What Are the Best Credit Card Consolidation Options?

If you are looking for the best credit card consolidation options to streamline your repayments, you have many options to consolidate debt. For those that do not know about credit card debt consolidation, it is the strategy that allows you to combine multiple credit card balances to streamline your repayment. 

The best credit card consolidation options include taking a personal loan, considering debt consolidation programs, retirement account loans, and home equity loans to repay your multiple credit card loans. With these multiple methods, you can reduce your monthly debt service, lower APR on interest, and reduce the repayment period. We will explore the top 6 of the best credit card consolidation options you can use in consolidating debt.

Top 6 Best Ways to Consolidate Credit Card Debt

1. Take a Personal Loan

One of the best credit card consolidation options is taking a debt consolidation loan from a credit union or your local bank. If your credit ratings are good and meet your lender’s eligibility, you qualify for a lower interest personal loan. 

The best thing about this is the application and terms elasticity you can enjoy. For example, you can apply for a personal loan online and get flexible repayment terms. 

The most common payment period is about 12 to 60 months and you’ll make one monthly payment to your bank instead of multiple credit card payments.

2. Consult a Credit Counseling Organization About Debt Consolidation Programs

A credit card debt counselor can help you find the best debt management plan. While not debt consolidation per se, we’re listing it among the best credit card consolidation options because it allows your credit counselor to approach your all of your creditors and negotiate the best interest rates. 

Most credit counseling organizations also offer budgeting and debt management advice. However, countercheck with your state attorney’s general office to ensure that you are consulting with a reputable credit counseling organization.

3. Get Balance Transfer Credit Cards with 0% APR Offers

Another credit card consolidation strategy is using a balance transfer credit card. This type of credit card consolidation allows you to move credit card balances from one card to another. Leverage the introductory 0% APR if you can move your credit balance within a specific period. You can avoid interest charges on the transferred balances if you can pay them off on time. Consider credit limit, balance transfer fee, and promotional period for your balance transfer credit cards before choosing this credit card consolidation strategy.

4. Take Out a 401(k) or 403(b) Loan

Applying for a retirement account loan is among the best credit card consolidation options for anyone participating in employer-sponsored retirement accounts. However, taking a loan from your retirement saving on consolidating your credit card loan should be in case of emergency because it affects your retirement fund. That said, this option offers applicants a few advantages —taking a loan from your retirement account does not require a credit check. Besides, you enjoy lower interest rates for retirement account loans.

5. Borrow Money from a Friend or a Family Member

If you do not meet the borrower’s minimum eligibility requirement, you can opt for this credit card consolidation method. However, consider the amount of money your lenders can offer before you can ask a peer, friend, or family member for money.

6. Home Equity Loans

Taking a home equity loan is among the best credit card consolidation options if you want to put your home as collateral. However, it is considerable risk if you get behind your monthly payments because you may lose your house. Besides, you can leverage lower interest rates compared to what you can pay to credit card companies.

7. Try to Work Something Out

Before you choose from among the best credit card consolidation options above, consolidation plan, ask your current credit card issuers about hardship programs. You may qualify for lowered interest rates if you can provide evidence of extenuating circumstances such as illness affecting your repayment plan.