How to Consolidate Credit Cards

How to Consolidate Credit Cards

If you find yourself with multiple credit cards and monthly bills that are becoming impossible to clear then it might be time to think about consolidating credit cards. This will make your financial situation easier to cope with and can save you money on interest payments over the course of the debt.

The Right Card

It is important that you find the right card to consolidate credit card debt too and you have some options that you need to consider and make the right choice.

Options are:

  • A new card that offers balance transfer deals
  • A new card that offers a lower interest rate
  • Your current credit card

Balance Transfer Deals

It is important if you are looking for a new balance transfer deal then you need to look at the fees that they will add to your debt. There are some companies that do not add the balance transfer fee on and this can save you a lot of money. So if you are looking for a card to consolidate credit card debt, make sure that it is a no balance transfer fee card this could save you having up to 3% being added to your debt. It is important that you read the terms and conditions because there might be certain restrictions attached to the transfer which could include a time frame for the balance has to stay with the company.

Lower Interest

It is important that you are able to find a deal that will mean that you can pay off the deal quicker and pay less money for the debt including the interest that you will need to pay.

It is possible that you might be able to find a consolidate credit card deal with a great low interest option or even a zero interest for a set time period. This would save you money and if you are able to pay the debt off completely in this time period it could save you lots of money in interest. If you are able to find a card that has a zero balance transfer fee and has no monthly interest then this is going to be one of the best cards that you will be able to find.

If you are able to pay off the credit card debt over the free interest period it will save you money. It is easy to do you breakdown the sum over the amount of months and aim to pay this with your last payment clearing the debt before the interest free period finishes and the interest rate soars to a very high premium.

You will need to work out the overall cost of the different card options available to you and this will show you the best card for your consolidation. What you do not want to do is to apply for many different cards as this will affect your credit rating.

If you have a poor credit rating there is a third option that will not require you to apply for a new card or affect your current credit score.

Current Credit Card

It is possible to approach your current supplier and ask if they would consider a balance transfer. You can also ask them if they would offer a different rate for the transfer. This will mean that you do not have to spend time with new credit card companies and it will mean that you are able to sort the problem easier than if you have to approach new credit card companies.

It is important that when you receive the money that you pay off the debt and this will mean that your credit score will be starting to improve already. It is important that you are not continuing with the use of the card as this will increase the amount of time that it will take for you to pay off the debts that you owe.


It is important that if you are thinking about consolidating your debts that you consider the full implications of the situation that you have found yourself in. Look at your income and make a budget that you will be able to find extra money each month where you can pay back more of your debt and this will reduce the length of time that you have the debt to pay and this will reduce the amount of interest that you will pay over the full length of term of the debt.

It will depend on the situation and the amount of money that you owe so it is important that you are able to work out which card is going to be better for you.

  • Factor in any balance transfer fees
  • Note the interest that will be applied to the debt
  • Work out the overall cost of the debt with each card

If you work out which is the best deal for you, you are looking for the option that you can afford and means that you pay back less interest.