3 credit cards turn in to 1

How to Consolidate Credit Card Debt Effectively

Milad Hassibi July 17, 2018

Whether you are in debt because of a medical emergency or an automotive breakdown, being under credit card debt can be overwhelming. If you are concerned about damaging your credit or having your account sent to a debt collector, credit card consolidation may be the most effective solution for your problems.

We’ve compiled some of the most popular ways consumers can consolidate their credit card debt:

Check out Balance Transfer Deals

A balance transfer is a great way to consolidate your debts. Many credit card companies currently3 credit cards in blue are merging into a red one offer a 0% introductory APR. A balance transfer is a great tool if you can find one with an interest rate below what you are paying now.

Consumers can literally save thousands of dollars in interest alone. It’s also important to note that many companies also have balance transfer fees that the transferee must pay.

Typically, this fee is 1-5% of the total credit balance being transferred.

Personal Loans

Another popular option with Americans to consolidate credit card debt is through a personal loan. With a personal loan, you get all the money you need upfront to pay off your high-interest credit cards.

Once your debt has been paid, you simply make the fixed monthly payments on your personal loan. The catch with personal loans though is that you often will need good credit to obtain one in the first place. If a bank rejects you for a personal loan, try online sources.

Debt Management Plans

A debt management plan is another great way to consolidate your debts. A debt management plan will involve you and a debt organization that will negotiate with your creditors to reach an agreement.

This can include waiving any late fees, reducing the interest you pay, and more. However, know that consolidating your debt through a debt management company can lead to a lower credit score.

Final Note

Consolidating your credit card debt is a great way to save money on interest while tackling your debt effectively. If you are looking to get a personal loan, CrediReady can help. Our nationwide network of trusted and verified lenders work with borrowers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and get the money you need today!

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