Debt Consolidation › Should I close the accounts after consolidating?

Should I close the accounts after consolidating?

Generally yes. Closing or reducing the credit cards and loans you have paid out is what makes consolidation work. If you leave them open and use them again, you can end up with the mortgage plus fresh debt.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

This is the single behaviour that decides whether consolidation helps or hurts. The numbers only work if the old debts stay gone. Lenders often want to see cards closed or limits reduced as a condition. Treating consolidation as a reset, not a fresh line of credit, is what turns it into a genuine improvement.

The key points

Close or reduce the debts you paid out.
Leaving them open risks fresh debt on top.
Lenders may require it as a condition.
Treat it as a reset, not new credit.

Free, no obligation

See if consolidating your debts stacks up

Answer a few quick questions and we can model the numbers across a panel of more than 70 lenders. No cost, no obligation.

Check Your Options

A few quick questions, no obligation.

What is your goal?

Buy a home or investment property First home, next home, or adding to your portfolio Build a house or develop land New build, renovation, duplex, or subdivision project Lower my current repayments Better rate, release equity, or restructure existing debt Finance an established commercial property Business premises or commercial investment asset

Tell us a bit more about the plan

How do you earn your income?

Standard salary or wage Full-time, part-time, or casual employment (PAYG) Self-employed or business owner Sole trader, company director, or contractor

How is your credit score?

This helps us match you to the right lender from the start.

Healthy No issues that I am aware of A few small marks A couple of late payments, now caught up Not sure, or it is complicated We work with specialist lenders for these situations

Last step. Where should we send your options?

Your information is private and we will never share it.

First Name

Last Name

Email Address

Australian Mobile Number

By submitting, you agree to be contacted by one of our team of licensed mortgage brokers. No obligation. No spam.

You're all set.

We've received your details. One of our friendly brokers will reach out within 1 business day to help guide you through your options.

More debt consolidation questions

Back to the full Debt Consolidation guide

Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.