How to Consolidate Credit Cards
Credit card debt can add up fast and juggling several bills can throw you off track. A simpler way to manage your debt is to consolidate all of it into one credit card bill or loan, so that you will have one interest rate and one bill to pay each month.
- Gather up all of your credit card bills. It may be beneficial to organize them in some way, such as by amount owed or by interest rate.
- Determine if you have enough money left on any of your accounts to transfer all of your debt onto one card. First, calculate how much debt you have. Next, determine how much available credit you have on each card. Last, decide if all of your debt will fit onto one of your current cards. If it will fit onto more than one card, put it on the card with the lowest interest rate. This will save you money in the long run. You can even try to negotiate a lower interest rate with your lender.
- Apply for a consolidation loan, if you can't move all of your debt onto one card. Even if you can, you may still want to see if you can snag a lower interest rate by applying for a loan. Hopefully, your application will be approved.
- Pay off all of your credit cards with the money that you receive from your consolidation loan. Try to negotiate on any fees you may have racked up.
- Close the paid off accounts so that you don't run them up again.