Absolutely. In fact, credit card debt is one of the most common types of debt people consolidate. With high interest rates and multiple payment dates, credit cards can quickly become hard to manage and expensive to maintain. Consolidating that debt into a single personal loan or debt consolidation loan can help simplify your finances and save you money in the long run.

By rolling your credit card balances into one fixed-rate loan, you’ll have just one repayment to keep track of, usually with a lower interest rate and a clear end date. No more juggling minimum payments or getting stung by sneaky fees. It’s a smarter, more structured way to get back in control of your cash flow, and actually start making a dent in your debt.

At first, yes, but it’s nothing to panic about. 

When you apply for a debt consolidation loan, most lenders will run a credit check. That might cause a small, temporary dip in your score, kind of like a quick pit stop on the way to better financial health. It’s standard practice and usually bounces back quickly.

But here’s where it gets good: if you stick to your repayment schedule and use the consolidation loan to pay off high-interest debts like credit cards or personal loans, you’re likely to see your credit score improve over time. Why? Because paying off multiple accounts lowers your credit utilisation ratio and shows lenders you’re managing your money well, both of which are green flags for your credit file.

It’s not a quick-fix, but done right, debt consolidation can be a strategic move toward stronger credit and a cleaner financial slate.

The amount you can borrow for debt consolidation really comes down to your unique financial picture, there’s no one-size-fits-all answer. Lenders will look at your income, credit score, existing debts, and overall ability to repay to determine how much they’re comfortable lending you.

In most cases, personal or debt consolidation loans range from $5,000 to $100,000, but the final figure depends on your circumstances and the lender’s criteria. If you’ve got a strong credit score and solid income, you may be able to borrow more. If your credit is a little shakier, you may still have options, just with different terms or interest rates.

Most of the time, yes, a wide range of unsecured debts can be rolled into a single consolidation loan. That includes things like credit card balances, personal loans, medical bills, store finance, and Buy Now Pay Later accounts. Basically, if it’s unsecured (meaning not tied to an asset like your home or car), it’s usually fair game.

However, there are a few exceptions and quirks depending on the lender. Some may exclude certain types of debts, or have limits on how much can be consolidated. That’s why it’s important to get the right advice upfront, so you don’t miss out on consolidating a debt that could be costing you more in the long run.