{"id":23792,"date":"2025-12-12T08:32:03","date_gmt":"2025-12-12T08:32:03","guid":{"rendered":"https:\/\/finderica.com\/?p=23792"},"modified":"2025-12-12T08:32:03","modified_gmt":"2025-12-12T08:32:03","slug":"how-to-consolidate-credit-card-debt","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=23792","title":{"rendered":"How to Consolidate Credit Card Debt"},"content":{"rendered":"\n
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\"ScoreCard<\/p>\n

So, you\u2019re falling behind on your credit card payments. Hey, it happens to the best of us. We\u2019ve been there.<\/p>\n

What are you going to do about it?<\/p>\n

If you have a lot of credit card debt, you should seriously consider consolidating it. Credit card consolidation is when you borrow money at a lower interest rate and use that loan to pay off your higher-interest credit cards.<\/p>\n

It\u2019s a twofer: You can save a ton of money on interest payments, and you free up cash<\/a> to pay off debt faster.<\/p>\n

Here\u2019s your guide to consolidating your credit card debt.\n<\/p>\n

Should I Consolidate My Credit Card Debt?<\/h2>\n

You should consider consolidating your credit card debt if you can answer \u201cYes\u201d to the following question: Would a lower-interest debt consolidation loan save you money each month and\/or speed up the debt payment? There\u2019s also a part 2, though. Don\u2019t run up debt again, or you\u2019ll soon be in the same predicament.<\/p>\n

Our Favorite Ways to Consolidate Your Credit Card Debt<\/h2>\n

You have a few options to consider. Keep in mind what your ultimate goal is: to borrow money at a low interest rate that you then use to pay off your high-interest debt. Hopefully, it leaves you with one payment and much lower interest. Here are some of our favorite avenues to consider, with the full list below.<\/p>\n

5 Ways to Consolidate Your <\/b>Credit Card Debt<\/b><\/h2>\n

Let\u2019s take a look at five different ways you can consolidate debt.<\/p>\n

1. Get a Debt Consolidation\u00a0<\/b>Loan<\/b><\/h3>\n

Because they tend to have lower interest rates than credit cards, many people will take out a personal loan to pay off existing debts. Just make sure you\u2019ll be able to repay the lender a fixed amount every month for the term of the loan.<\/p>\n

The pros:<\/b> You can often apply for a personal loan without hurting your credit score, and you don\u2019t usually need a high score to qualify.<\/p>\n

The cons:<\/b> These loans also usually have an upfront origination fee, and interest rates vary based on your credit score. It\u2019s important to shop around for a good rate at a respected lender. Someone with a \u201cgood\u201d credit score (between 700 and 749) should expect fixed rates close to current averages.\u00a0Credit unions tend to have the best rates locally, but if you don\u2019t have time to apply for one, you can search the web.<\/p>\n

Fortunately, instead of spending hours scouring the internet, you can go window shopping at an online marketplace that\u2019ll help you pinpoint the best loan offers.<\/p>\n

Here are two of the best places to find a credit card debt consolidation loan:<\/p>\n

MoneyLion: Get the money you need<\/b><\/h4>\n

MoneyLion<\/strong><\/a>\u00a0can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You\u2019re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.<\/p>\n

MoneyLion can help you borrow up to $100,000 (no collateral needed) with fixed rates starting at 5.99%.<\/p>\n

MoneyLion won\u2019t make you stand in line or call a bank. And if you\u2019re worried you won\u2019t qualify, it\u2019s free to check online<\/a>. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.<\/p>\n

AmOne:\u00a0Get out of debt faster\u00a0<\/strong><\/b><\/h4>\n

If you owe your credit card companies $100,000 or less, AmONE<\/strong><\/a> will match you with a low-interest loan you can use to pay off every single one of your balances.<\/p>\n

The benefit? You\u2019ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmONE rates start at 6.40% APR), you\u2019ll get out of debt that <\/em>much faster. Plus: No credit card payment this month.<\/p>\n

It takes less than a minute and just 10 questions to see what loans you qualify for.<\/strong><\/a><\/p>\n

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Attention! All Smart Credit Card Users:<\/h3>\n

Debt can get out of control fast. (Inflation, amiright?)<\/p>\n

That doesn\u2019t mean you have to let your debt run your life. We put together a list of\u00a0the best strategies<\/a> to stay out of credit card debt and reach your next big savings goal.<\/p>\n<\/div>\n

2. Use a <\/b>Balance-Transfer Card<\/b><\/h3>\n
\"Two
Tina Russell\/The SS<\/figcaption><\/figure>\n

If you have good or excellent credit, you could apply for a zero- or low-interest credit card<\/a>, and if approved, transfer the balance from your high-interest cards.<\/p>\n

You\u2019ll usually need a credit score around 700 to get approved, but balance transfer credit cards<\/a> offer a 0% interest rate on transfers for 12 to 21 months with credit limits up to $100,000.<\/p>\n

Of course, that\u2019s not as long as the two- to five-year time frame that a personal loan will give you to pay back the money you owe, so this method is best for those with small amounts of debt compared to their income.<\/p>\n

The pros:<\/b> If you transfer a credit card balance and repay it during your new card\u2019s 12- to 21-month promotional period, you\u2019ll pay no interest. And you won\u2019t run into prepayment penalties you see in some personal loans. SCORE!<\/p>\n

The cons:<\/b> After that sweet, sweet promotional period ends, a high interest rate usually kicks in. If you don\u2019t have your balance paid off by then, you\u2019re back to paying high interest all over again. And many cards will charge you a balance transfer fee \u2014 usually something like $5 or 3% of the balance you\u2019re transferring.<\/p>\n

It\u2019s also important to be aware that if you miss a payment, it might nullify the 0% offer. And you usually can\u2019t get approved for a transfer from a card with the same issuer.<\/p>\n

3. Borrow or Withdraw From Your Retirement Plan<\/b><\/h3>\n

Here\u2019s an interesting reality check: Virtually any financial adviser, and most Penny Hoarders, will tell you that this is a bad idea, because it will impact your retirement savings.<\/p>\n

But 1 out of every 4 American households ends up withdrawing or borrowing from a 401(k) at least once, according to a study from the financial website HelloWallet. So clearly, a lot of people feel it\u2019s a valid option.<\/p>\n

Let\u2019s go over the basics of a 401(k) loan here:<\/p>\n