By consolidating your credit card debt into a personal loan, you’ll have a definite plan for paying off your old card debt.
You may be able to consolidate your debt with a personal loan from your bank or credit union.
A lender may lower the interest rate on your credit card balance when you participate in a debt management plan.
Debt management plans typically last three to five years.
Credit card consolidation can affect your credit in many ways, depending on which strategy you choose.
Here’s how credit card consolidation works: You first decide if you want to take out a new loan, open a new credit card, or enroll in a debt management plan (more on that later).Some strategies will be more affordable than others, and your credit card consolidation choices may be limited by your credit standing.If you have good credit, look for a credit card with a low-interest rate.You may even qualify for a card with a 0% rate for 12 or 18 months.Personal loans charge simple interest (as opposed to credit cards, which often have variable rates and sometimes have different rates for a credit card balance transfer and purchases on the same card) and they typically have a loan repayment term of three to five years.