How do I Consolidate Credit Card Debt? (with pictures)

Malcolm Tatum
Malcolm Tatum
The terms of a credit card should declare  the interest a consumer will pay when using it.
The terms of a credit card should declare the interest a consumer will pay when using it.

Consolidating your credit card debt can be a smart move, assuming that it is possible to obtain a lower interest rate than the rates on your credit card accounts. There are actually a few different ways you can go about the process to consolidate credit card debt, including one method that does not involve going through any third party. Here are three approaches you can consider.

Possible scenarios for credit card debt.
Possible scenarios for credit card debt.

When most people think of consolidating debt, their first thought is to go through a debt consolidation service. In fact, this may or may not be the best option. If your credit rating is already declining due to slow pays, a service of this type may be your best bet to stop the damage and begin repairing your damaged credit. However, if you still have excellent credit, there is a good chance you can get a better interest rate elsewhere, a move that will save you money over the long term.

Debt consolidation can help ease someone's debt burden.
Debt consolidation can help ease someone's debt burden.

Obtaining a loan with a low rate of interest is also an excellent way to consolidate debt. This approach allows you to settle all the balances on your current credit cards, get out from under several different and higher interest rates and repay your debt in monthly installments that is easy to manage. Along with the convenience of affordable monthly payments, the lower interest rate on the loan means you will be debt free much sooner than if you continued to pay off the balances on each credit card separately.

Continuing to use a credit card typically leads to greater debt.
Continuing to use a credit card typically leads to greater debt.

Since getting a better interest rate is one of the key reasons to consolidate credit card debt, you may be in a position to manage the entire process without a debt consolidation service or a bank loan. If you have one credit card with an interest rate lower than your other cards, transfer the balances over to the one card.

Using this method to consolidate credit card debt immediately creates two advantages. First, you have one easy monthly payment to keep up with, rather than multiple payments with multiple due dates. Second, you immediately begin saving money because of the lower rate of interest. Should you make it a point to refrain from running up new balances on your paid in full credit accounts, you could be out of debt in a significantly less amount of time.

It is possible to consolidate credit card debt and become debt-free in a shorter period of time. Assess your current situation, and create a budget that will allow you to manage a consolidated payment while still making it possible to begin saving a little money in an interest bearing account. With careful planning and execution, your decision to consolidate credit card debt could be the beginning of a bright and secure financial future.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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    • The terms of a credit card should declare  the interest a consumer will pay when using it.
      The terms of a credit card should declare the interest a consumer will pay when using it.
    • Possible scenarios for credit card debt.
      Possible scenarios for credit card debt.
    • Debt consolidation can help ease someone's debt burden.
      Debt consolidation can help ease someone's debt burden.
    • Continuing to use a credit card typically leads to greater debt.
      Continuing to use a credit card typically leads to greater debt.