Credit card consolidation options
There are many options that you can choose from to consolidate your credit card debt. The option you choose will be highly dependent on your credit score and how much you need to consolidate. Review the options below to make sure you take advantage of the best solution for you.
Consolidation Strategy: Take out a personal loan with a lower interest than your current credit card and pay off your credit card debt with the loan. Keep in mind that you will still have a loan to pay just with a lower interest rate, so we would recommend not using credit until you are done paying off your debt.
Home Equity Line of Credit (HELOC)
Consolidation Strategy: Use a home equity line of credit, or HELOC, to pay off your credit card debt in full. Since the HELOC is secured by your house, it will almost certainly give you a lower interest rate than a personal loan. However, if you do not pay back the money borrowed, there is risk for a lien on your home.
0% APR Balance Transfer Credit Cards
Consolidation Strategy: Take your current credit card debt and transfer the balance to the longest 0% intro APR credit card possible. Then, make a goal to pay off the balance before the 0% APR period runs out.