Credit Card Debt Consolidation Options
The three main routes
Balance transfer: move balances to a card with a 0 percent intro APR and pay no interest during the promo, for a 3 to 5 percent fee. Personal loan: a fixed-rate, fixed-term loan that pays off the cards and gives you one predictable payment. Debt management plan: a nonprofit credit counselor negotiates lower rates and rolls your cards into one monthly payment.
How to choose
Match the tool to your situation. Good credit and a balance you can clear in 12 to 21 months? A balance transfer is usually cheapest. A larger balance you need years to pay off? A personal loan locks in a rate and term. Struggling to keep up or with damaged credit? A nonprofit DMP or negotiation may fit better.
Make consolidation actually work
Consolidation only helps if you stop adding new debt and follow the payoff plan, otherwise you end up with the loan plus fresh card balances. Avoid for-profit debt-relief firms that charge high fees; go straight to issuers or a nonprofit counselor. See how to pay off credit card debt for the payoff methods.
Frequently asked questions
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