Debt consolidation is a strategy to roll multiple old debts into a single new one. Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable
Consolidating credit card debt into loan companies the payoff period shorter. The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.
Consolidation works best when your ultimate goal is to pay off debt. This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.
Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate. Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee. The loan may give you a lower interest rate on your debt or help you pay it off faster.
NerdWallet recommends visiting your local credit union first. Most credit unions offer their members flexible loan terms and lower interest rates than online lenders, especially if you have a low credit score. Online lenders typically let you apply for a debt consolidation loan without affecting your credit score.
Some also send "Consolidating credit card debt into loan companies" directly to your creditors, increasing the odds of successful debt consolidation. Compare personal loan rates on NerdWallet. A home equity loan is a lump
Consolidating credit card debt into loan companies loan with a fixed interest rate, while a line of credit works like a credit card with a variable interest rate.
The good and bad of home equity loans. But the drawbacks are significant: NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence.
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6 options to consolidate your credit card debt.
Updated Sep 12 You can find personal loans from banks, credit unions and online lenders. These credit card consolidation loans potentially can save you time and money. More than 4 in 10 Americans with credit card debt owe at least $15, loan companies that can help you pay off your credit card debt.