What debts can I consolidate?

Now that you know what debt consolidation is, the next question that often comes to mind is a common one:

"Which of my debts are eligible for consolidation?".

Debt consolidation loans are typically used to consolidate everything from outstanding loans and financing, through to rapidly increasing credit card debts, and even hospital or medical bills that so often eventuate in the case of an emergency. A situation that’s often difficult for many New Zealanders to plan ahead for, let alone save for. But debt consolidation isn’t limited to just a handful of debts.

New Zealand is a diverse country, and so are its list of debts. Credit cards. Loans. Mobile, household and utility bills. The list goes on. Each debt varying in type, age, and interest rate. But no matter how extensive your debts may be, it’s very likely that you, too, can reap the benefits of debt consolidation by consolidating them into one simple, easy to manage repayment.

Are your debts eligible for consolidation? Simply check the list we’ve compiled below:

Common debts you can consolidate

  • Credit cards
  • Car and vehicle loans
  • Student debts and loans
  • Unsecured personal loans
  • Hospital and medical bills
  • Household and utility bills, including electric, gas, telephone, Sky, internet and other bills
  • Mobile and cell phone bills
  • Payday loans
  • Overdue rent
  • Finance company loans
  • Personal lines of credit
  • Most other forms of credit that was granted without a collateral requirement

Debts you can’t consolidate

Wait, why can’t I consolidate all of my debts?

Debt consolidation is the perfect opportunity to bring all of your debts together, and make them easier to manage. However, there are some debts or loans - such as those listed above - that aren’t eligible for consolidation. But why is this the case?

While for many New Zealanders, the day-to-day management of debt may feel largely the same, irrespective of the debts you carry, not all debts are created equal. Your debts actually fall into two major categories: secured and unsecured.

Secured loans and debts are those debts that are taken on in exchange for an item or product that you’re paying for. For example, a house purchased using a mortgage. The majority of these debts cannot be consolidated. There are some cases, however, where consolidation is possible. For example, if you have a secured vehicle loan with another provider, Unity could consolidate that loan and take security of the vehicle in question.

In contrast, the majority of unsecured debts or loans can be consolidated, and are usually borrowed without any collateral attached to them. With unsecured debts, there’s no property or other item that could be taken back if you’re late or miss a payment. For example, if you’re late on a credit card payment, the credit card company won’t seize your car, sell your vehicles or possess your property.


Want to know your options?

Try our debt consolidation calculator.

Apply for a debt consolidation loan?

secured loans from
9.9% p.a.*


minimum $2,000

affordability and credit score criteria apply

unsecured loans from
10.9% p.a.*


minimum $2,000

affordability and credit score criteria apply