Credit card consolidation involves combining all of your credit card debt and paying it off in one monthly payment. There are numerous ways you can pay off your consolidated credit card debt, from personal loans to balance transfer credit cards. But one thing remains the same regardless of the method you choose: instead of making multiple monthly payments, you will just make one.
Consolidating credit card debt can come with numerous benefits. In addition to only making one monthly payment, you will likely secure a lower interest rate than you have with your credit card company. You might also be able to secure a lower monthly payment and be able to pay your debt back over a longer period of time. Plus, you can potentially improve your credit score in the process of repaying your debt.
Worth noting, however, is that experts don’t recommend consolidating credit card debt if your total amount of debt is more than 50 percent of your annual income. If you’re unsure whether consolidation is the right decision for you, you can always contact a nonprofit credit counselor for advice.
There are various ways you can consolidate credit card debt. Regardless of the method you choose, consolidating your debt can put you on the path to successfully becoming debt free.