Be aware, however, that balance transfer cards often charge a transfer fee (usually 3%), and some even have annual fees.Another DIY way to consolidate your credit card debt would be to stop using all your cards and pay using cash instead.This can allow you to set aside a portion of your income each month to pay down balances for each card, one at a time.
There are some drawbacks — you could face a longer repayment period before you finish paying off the debt — but it’s definitely worth investigating.
Learn More About Consolidation Loans Bill consolidation is an option to eliminate debt by combining all your bills and paying them off with one loan.
The best way to consolidate credit card debt under $3,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.
You also could look at a personal loan to pay off your balances.
The most-recommended DMPs are run by non-profit organizations.
They start with a credit counseling session to help determine how much money you can afford to pay creditors each month.— and what the monthly payment and interest rates are on those bills. Once you have this information, make sure to compare lender’s rates, fees and length of time making payments before making a decision.A consolidation loan should reduce your interest rate, lower your monthly payment, and give you a practical way to eliminate debt.Utilizing a debt management plan could affect your credit score.However, at the end of the 3-to-5 year process, you should be debt free, which definitely improves your score.The best way to consolidate a large amount of credit card debt (anything over ,000) without taking on a new loan, is to enroll in a Debt Management Plan.