Are you stuck into the vicious cycle of multiple credit card debts and looking to consolidate your credit card debt? Now, that’s a wise decision as debt consolidation programs make the process easier for you by one new loan instead of several loans- accompanied by lower monthly payments and lower rate of interest.  Credit card debt consolidation makes it easier for you to manage the debt with one single payment each month and you will no longer need to remember multiple deadlines. But, how to consolidate credit card debt? Well, there are several ways by which you can consolidate your credit card debt.

Before getting into the loan consolidation options, you should make sure to review the credit report to correct the errors, if any. You can have your credit report checked for free by the 3 national accredited credit reporting bodies. If there is any error on your credit report, you might not be deemed eligible for debt consolidation. So, getting a credit check is a must before you look for debt consolidation options.

Consolidate to low-interest card

This is one of the most popular options when it comes to consolidating multiple credit card debts. If your credit score is in a good status, you can transfer the high-interest rate card balances into one single card with lower interest rate. It will help you with good savings on finance charges per month when you pay the debt. There are multiple balance-transfer & low-interest credit card plans for those with great credit report.

Consolidation of several credit card debts into one low-interest card will increase the credit score. However, to accomplish optimal credit, the card balance should be 30% or less in relation to your overall available credit. If your credit limit is 10,000 USD, the balance of credit card must be 3,000 USD or less.

Consolidation loan from credit union or local bank

You can consolidate the debt with personal loan that can be derived from credit union or your bank. Before you apply for the new loan, you should be clear about credit requirements of the lender. In many cases,. The creditors define some minimum eligible credit score for the consolidation loan. Make sure your credit score matches up to that requirement.

Online debt consolidation company

There are debt consolidation companies online that can help you with credit card debt consolidation. The one you take to should be backed by a high A+ score from BBB. It must be a seasoned and highly reputed name in the market, supported by a wide list of happy clients. It’s ideal to go for non-profit debt consolidation firms as they usually charge lower fees and are not solely centered on making profits for themselves. 

Consolidate debt through debt management plan

There are debt management plans too that can consolidate your existing debts into one single payment each month, with lower rate of interest. You don’t take a new loan here but your credit counseling company sits with your creditors to negotiate a reduced monthly amount for you.