Consolidating Credit Card Debt

Consolidation is one solution to your financial worries if you have multiple credit cards and heavy debt to pay down. Bad credit is a serious problem and consolidation can be a good solution to make payments more manageable and improve your score.

Choose the Right Card

If you opt for a balance transfer, then you may want to shop around for promotional offers with low interest rates. Issuers are in tight competition for new customers and offer attractive low rates and even 0 percent rates. The promotional period varies considerably and so does the interest-free or grace period. It is best to find a card with a grace period of at least 25 days and a promo period of 18 months. The majority of card issuers offer a promotional period of 6 – 12 months but it pays to shop around. The good thing about balance transfer cards is that you transfer credit card debt with ease and have a single payment to make. This makes it easier to budget and plan and avoid late payments and penalty charges and interest. If you have student credit cards, debt consolidation is also an option to make payments more affordable. You can also transfer balances on specialty, department store, cashback, rewards, gas, and other types of cards that charge high interest. If you pay the balance in full, you will not only rebuild credit but will also repay your balances faster.

Other Options

This depends on the type of debt you have, whether secured or unsecured, credit cards, consumer loans, government-sponsored or private student loans, mortgages, and so on. Many issuers offer debt consolidation loans with competitive rates which make payments more affordable. There are plenty of benefits, especially if you have a heavy debt load, one being that you can combine different high-interest balances, including loans and cards. Other benefits to debt consolidation include better budgeting and stress reduction. The best part is that this is a great way to stop collection calls, which is annoying and stressful and wastes valuable time. Another benefit for borrowers is that many banks and other issuers offer loans with a fixed rate which makes it easier to plan and make timely payments. As an added benefit, many issuers offer flexible solutions that allow customers to repay their debts on their own schedule. There are different repayment schedules to look into, ranging from 24 to 60 months. The majority of customers opt for a loan with a term of 36 months but this depends on different factors, including debt amount, interest rate, and others. Many issuers also advertise a host of benefits such as no hidden fees or charges, quick approval and application processing, funds deposited in the customer's bank account, affordable rate, and consistent monthly payments.


If debt consolidation is not an option for some reason, look into alternatives such as credit counseling, negotiation with financial institutions, customer proposal, and so on. Each alternative has pros and cons but the main benefits they have in common are more affordable payments and the chance to acquire healthy financial habits and avoid excessive debt in the future. It is best to avoid bankruptcy because your score will plummet but it can be the only option in some cases.