Credit card consolidation is the process of taking out a personal loan to pay off existing credit card debt. Depending on your credit score, income and level of existing debt, your credit card consolidation loan may come with a lower rate than what you’re currently paying on your credit cards.
Once you’ve gotten a credit card consolidation loan, you could either pay off your credit cards yourself, or have your new creditor pay them directly. Although you won’t be eliminating your debt, consolidation will help you avoid juggling multiple credit card payments. Instead, you’ll be responsible for one single personal loan payment.