What is Credit Card Consolidation?

Credit card consolidation refers to combining multiple credit card balances into one. It is easier to track because there is only one monthly payment and due date. Consolidation strategies are often offered with lower APR which will allow you to pay the balance off faster and save interest.

6 Ways to consolidate credit card debt

 Personal loans ✓  0% APR Balance transfers  HELOC or Second Mortgage  401(k), Loan  Peer-to-Peer Lending ✓  E quity in Owned Vehicles

1.  Personal loans

A loan consolidation loan is one of the best ways to consolidate credit card debt. Many times, the application process can be done online or over the phone. Flexible terms (typically between 12 and 60 months)

Personal Loan

2.  Credit Cards: 0% APR Balance transfers

Numerous credit cards offer the ability to purchase an Offer introductory of 0% APR Balance transfers are only allowed for a short time after the card was opened. They may still be subject to balance transfer fees, which are typically 3% to 5% of the consolidated balance. However, they often offer 0% introductory period between twelve and 18 months so that you don't have to worry about any additional interest accruing to the balance.

3.  HELOC or Second Mortgage

If your home has increased in value or your balance has been paid down, you could use your home to consolidate your debts. You can use your home as collateral to pay off other debts by taking out a second mortgage or using home equity credit (HELOC).

4. 401(k), Loan

We don't recommend that you take money out of your retirement savings unless it is absolutely necessary. A 401K loan is not the best choice for consolidating debt. However, there are some advantages to it.


5.  Peer-to-Peer Lending

A peer-to-peer loan can be another way to get funds for consolidation loans. Peerform is a marketplace lending platform that connects people who are looking for loans and those who are willing to invest. It is a win-win situation. A borrower looking to consolidate debts into a single monthly payment, and an investor looking for a steady and profitable return on their investment.

6.  Equity in Owned Vehicles

This could be a good option if your vehicle is in good condition and has a low amount of debt. You could use your vehicle as collateral to get a loan. This would help you pay off your other creditors. This situation allows you to get an auto loan rate, which is usually much lower than an unsecured personal loan.

credit card debt consolidation alternatives methods

Yes, you can apply another method for debt management. Like IVA, Bankruptcy, Debt Settlement, etc. If you are looking for debt management solutions? Get free advice from UK's top leading debt management company Acme Credit Consultant.