Debt Consolidation › Can I consolidate debt with a poor credit history?

Can I consolidate debt with a poor credit history?

It is harder but sometimes possible through specialist lenders, usually at a higher rate and lower loan to value ratio. The aim is often to clear the problem debts and then move to a mainstream loan later.

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

Why this matters

Mainstream lenders are cautious with impaired credit, but specialist lenders exist for exactly this situation. The terms are tighter, so it is a stepping stone, not a destination. The plan is usually to consolidate, conduct the new loan cleanly for a period, then refinance to a better rate once your file has recovered. A broker maps that path.

The key points

Possible through specialist lenders at higher rates.
Usually a lower loan to value ratio applies.
It is a stepping stone, not the end point.
The plan is to refinance to better terms later.

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What is your goal?

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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

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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.