Consolidating credit card debt is a smart financial move. There are eight strategies that you can use to help pay down your outstanding balances, such as using the extra cash flow on hand to make larger payments or not making new purchases until after you’ve paid off an existing balance.

Consolidating credit cards into one card is a strategy that has been used for years. There are 8 strategies to consolidate credit card debt.

Paying down many credit card bills might be more difficult than paying off a single obligation. That’s not just due to the extra work involved in sending payments to various accounts, but also because receiving multiple invoices each month that serve as a reminder of your outstanding sums wears on your mental health.

Comparatively to having a single creditor, having many unpaid obligations might lower your credit score. Fortunately, there are choices for credit card consolidation, such as balance transfer credit cards and different loans, that may make paying off your debt much simpler.

Related: Age-specific average savings, source of the image.

Why Consolidate Credit Cards?


There are options to consolidate your credit card debt into one account if you have open balances on many different cards. These amounts may be added to a variety of different loans, including credit card balance transfers.

Check out our post on debt consolidation 101 if you’re unclear about how this procedure works., source of the image.

What Is the Process of Credit Card Consolidation?


To pay off your current accounts when you wish to consolidate credit card debt, you’ll utilize another loan or line of credit. Your debt is effectively moved to a new account as a result of this. For example, you may move all of your bills to a balance transfer credit card with a promotional 0% APR term and then try to pay them off within this timeframe (though keep in mind that you often need a decent credit score to qualify for these cards).

Why should credit card debt be consolidated? You will then have a single debt with a single monthly payment as a result of doing this. And in a perfect world, you’d move your debts to a loan with a lower interest rate and possibly even a smaller monthly payment.

Kitzcorner / istockphoto, source of the image.

Pros & Cons of Credit Card Consolidation


As you study how to consolidate credit card debt, you’ll begin to see that there are a number of benefits and downsides to take into account. Of course, the main benefit of consolidating your credit card debt is that you’ll have to make fewer payments each month, which may save you time and reduce stress.

Your credit score may also be raised by having fewer accounts with outstanding. When you establish a new account or take out a new line of credit to consolidate existing debts, you can be eligible for a cheaper interest rate with an improved credit score.

This may help you pay off your bills more quickly while also saving you money on interest fees. However, there are several disadvantages to consolidating your credit cards. You’ll probably need to look around and submit an application for a new loan or line of credit first. The application procedure may take some time, and if accepted, you’ll have to spend extra time moving the balances on all of your current credit cards to the new account.

Additionally, you very definitely will pay costs for applying for additional loans or lines of credit, such as credit card balance transfer fees or other expenses. Before proceeding with credit card consolidation, take the time to compare these expenses against your possible savings., source of the image.



  • Less monthly payments will be required.
  • You may be able to raise your credit score.
  • Your interest rates could be lowered.
  • Less stress will result from fewer payments.
  • Your balance could be paid off sooner than expected.

Photo courtesy of Deposit Photos.



  • You may need to create a new account.
  • Multiple balance transfers need preparation and effort.
  • Fees for balance transfers might be required.
  • You may not always be eligible for a reduced interest rate.
  • The underlying financial practices that caused debt in the first place are not addressed.

NortonRX/IstockPhoto, source of the image.

8 Credit Card Consolidation Techniques to Reduce Credit Card Debt


You must choose a plan and the loan kind that best suits your demands before starting a credit card debt reduction approach.

fizkes/istockphoto is credit for the image.

1. Credit Cards with Balance Transfers


You’ll see why debt transfer credit cards might be ideal for credit card consolidation once you grasp what they are. A balance transfer credit card lets you transfer amounts from other accounts, as the name implies.

Since you can easily apply for a new credit card online, using a balance transfer card can be one of the simplest ways to consolidate your credit card debt. The best credit card for debt transfers will feature a minimal balance transfer fee and the longest promotional financing term with a 0% APR.

Promotional financing periods are at least six months long, but the best deals may run up to 18 months. Although some offers include a 5 percent charge, anticipate paying a 3 percent balance transfer fee. The normal APR will take effect when the promotional rate ends.

You may start by browsing our lists of the best debt transfer and no interest credit cards to get your quest started., source of the image.

Pros & Cons



  • Credit cards with balance transfers are simple to apply for.
  • There are several deals available.
  • For a certain period of time, interest-free financing is available.


  • Typically, people with good and great credit are the only ones who get offers.
  • Your credit limit won’t be revealed to you until after approval.
  • A 3 to 5 percent balance transfer fee will be charged., source of the image.

2. Loans for credit card consolidation


A credit card consolidation loan, which is an unsecured personal loan from a credit union, bank, or internet lender, is an additional possible tactic. You will have some certainty thanks to the set rates and payments on these loans.

Your creditworthiness will determine if you may get a credit card consolidation loan with an interest rate that is lower than the balances on your present credit cards. Due to this, it is worthwhile to compare the personal loans that are offered to you., source of the image.

Pros & Cons



  • Lenders may be approached directly for payments.
  • Predictability is provided through fixed rates and payment sums.
  • It’s possible to find lower APRs.


  • Origination and other costs are possible.
  • Those with poor credit may not be eligible for these loans.
  • Compared to credit cards with balance transfers, the application procedure is lengthy., source of the image.

3. Mortgage Loan


Your home’s equity, which is the difference between what it is now worth and how much you owe, may be used as collateral for a lump sum loan. These proceeds might then be used to settle your credit card debt.

The interest rates on this secured loan may be much lower than on unsecured personal loans since it is secured. But if you don’t pay back the loan, your house might be in jeopardy. Don’t forget that you’ll also have to pay closing expenses and other fees.

Chainarong Prasertthai/IstockPhoto is the source of the image.

Pros & Cons



  • Compared to personal loans, they have lower interest rates.
  • These loans may have lengthy payback terms, which keeps payments manageable.
  • Credit criteria are often less strict.


  • You must own real estate with a sizable equity.
  • Origination and closure costs are possible.
  • If you default, you might lose your house., source of the image.



A home equity loan and a HELOC, which stands for home equity line of credit, are both revolving lines of credit. In many instances, this enables you to make monthly interest-only payments, and once again, your interest rate will be lower than it would be for an unsecured loan. You may use the credit line to make withdrawals to cover other costs or to pay off additional debt. But once again, your house is being used as security.

Designer491/Istockphoto is credit for the image.

Pros & Cons



  • They provide flexible conditions for borrowing and repaying money.
  • Compared to unsecured loans, interest rates are often modest.
  • Less demanding credit standards apply to qualify.


  • Equity in your house is required.
  • Origination and closure costs are often high.
  • Options for interest-only payments might make it simple to put off paying off debt.

Picture Source: tommaso79/iStock.

5. 401(k) Loan


You may be able to get a loan to consolidate your credit card debt if you have a 401(k) retirement savings account. This choice doesn’t verify your credit and may have a cheaper interest rate than a personal loan. It won’t have an impact on your credit since you are effectively both the lender and the borrower.

But keep in mind that doing so would require you to withdraw from your retirement funds, and that defaulting on these loans will result in severe penalties. A one-time origination charge will probably be due as well, but you won’t be subject to taxes or penalties as you would with an early 401(k) withdrawal.

Unsplash / Raw Pixel, source of the image.

Pros & Cons



  • There is no need to verify credit.
  • Your credit is not impacted.
  • Low interest rates exist.


  • Your retirement funds are at danger because of you.
  • If you don’t pay back the loan, you’ll incur significant costs.
  • You could have to repay the loan more rapidly if your employment changes.

Damir Khabirov/Istockphoto provided the image.

6. Plans for managing debt


Nonprofit credit counseling organizations provide debt management plans as tools to assist clients in paying off their debt. They function by establishing voluntarily signed contracts between you and your creditors. The nonprofit organization then distributes a single payment you make to them each month to your creditors. You may lower your interest rates and costs with the use of debt management strategies., source of the image.

Pros & Cons



  • Each month, you make one payment.
  • You may be able to lower your interest and charge rates.
  • An expert counselor is there to help you.


  • A request to discontinue using credit cards could be made.
  • If you skip even one payment, the conditions of the plan might be in jeopardy.
  • There will be monthly costs as well as enrollment fees., source of the image.

7. Loan from friends and family


This can be an easy approach to consolidate your credit card debt if you have access to a loan from friends or relatives. Simply approach a reliable friend or relative for a lump sum loan, which you may then repay in accordance with a mutually agreed-upon schedule. You may then use these monies to reduce your credit card debt.

Istockphoto provided the image.

Pros & Cons



  • There may be no fees or even interest charges for you.
  • Credit checks are not required.
  • No official application procedure exists.


  • Your ties to family and friends might be put at jeopardy.
  • If you don’t pay back the loan, you can be putting other people’s finances in danger.
  • It might be challenging to request assistance.

Source of the image: fizkes/istockphoto.

Cash-Out Auto Refinancing 8.


It could be feasible to refinance your automobile and withdraw cash if you own it entirely or have a sizable equity in it. Then you might utilize those monies to settle your other debts. Even when refinancing, you may often get a secured loan with a rather cheap interest rate. However, bear in mind that a cash-out refinance uses your automobile as collateral and may incur additional costs.

Gpointstudio/Istockphoto is the source of the image.

Pros & Cons



  • A cheap interest rate can be available.
  • In comparison to other secured loans, such those backed by your home equity, there are often lower costs.
  • Since you are only substituting one monthly loan with another, there is minimal impact on your credit.


  • You may not have much equity since cars usually depreciate.
  • If you are unable to repay the loan, you run the danger of losing your car.
  • Origination and closing costs are still a possibility., source of the image.

Advice for Preventing the Explosion of Your Credit Card Debt


Try to keep your credit card balances under control before you find yourself in need of credit card consolidation. As the proverb goes, the best course of action when stuck in a hole is to quit digging. Similarly, you should cease using credit cards as your main form of payment if your credit card debt is out of control. You’ll stop accruing credit card debt when you convert to cash or a debit card, which is the first step in paying off your current amounts.

Try settling your lowest balances initially as a next step. By instantly reducing the number of creditors you have, this approach, also known as the debt snowball technique, enables you to see benefits quickly. Additionally, making payments as soon as you can rather than waiting until the due date will be beneficial since credit cards assess interest based on the average daily amount of your account.

In fact, you could think about paying more than once each month. Additionally, by doing this, you may avoid spending the money on items other than paying off your debt., source of the image.

Credit card offers comparison


If you find yourself in a scenario where you have credit card balances on many separate accounts, credit card consolidation may be beneficial. There are many options to combine such sums into one monthly payment, preferably with a reduced interest rate, including debt management programs, balance transfer credit cards, and other kinds of credit card consolidation loans.

We can assist you in finding any sort of card, including the best balance transfer credit cards. Visit our credit card comparison for more details.

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This article originally appeared on and was syndicated by


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Nattakorn Maneerat is the photographer.

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The “how to consolidate credit card debt without hurting your credit” is a guide that has 8 strategies. The first strategy is to make sure you have good credit and the second strategy is to pay off your debts as quickly as possible.

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