If you want to consolidate credit card debt, you need to know the numbers. There are various options you can pursue for credit card consolidation, but the two most popular options are: Open a balance transfer card A balance transfer card allows borrowers to transfer their balances onto a new credit card, typically with a 0% interest rate for an introductory period of time.If you're able to pay off your debt within the promotional period at a 0% interest rate, you have the potential to save a lot of money on interest.The caveat here is that you must have good credit to score a better rate.Read the terms and conditions and understand what fees may be involved when taking out a personal loan.Debt consolidation is the process of combining your debts from multiple lenders into a single loan, typically at a lower interest rate.Essentially, you ask a lender — sometimes a credit card, sometimes a bank — to buy out your multiple loans, and you agree to pay back the lender according to its terms.You want to make sure that credit card consolidation can save you money and make payments more manageable.
Plus, you might be able to consolidate your debt for a lower interest rate than the original loans (or at least some of them) and ultimately save more on interest payments over time. Make a list of your balances, your interest rates, and your lenders.
The fact is you're taking out another credit card or loan.
If you don't have a strategy to pay it back, you'll just end up in more debt.
You'll also want to read the fine print to know exactly how long the promotional period lasts, and have a strategy to pay it all or most of your debt during this time.
Take out a personal loan Another option for credit card consolidation is to take out a personal loan.