Loans for consolidating credit cards
That can help you avoid the minimum payment trap that can keep you in debt for years to come.
Sometimes what appears to be debt consolidation isn't.
In that case, the new loan would have a balance equal to the sum of the other loans. You've probably heard of credit card balance transfers, but another option is a personal loan.
They require you to get a loan from a bank, credit union, or peer-to-peer lender who will agree to consolidate some or all of your debts (usually credit card balances) into one new loan.
Before you apply for a balance transfer, however, you should be aware of what the new card’s annual percentage rate (APR) will be once the promotional rate ends.
Most balance transfer credit cards charge a fee for transferring a balance from another credit card.
The effectiveness of this method depends on the terms of the loan offer.
The benefit of this method is that it provides a higher credit line, sometimes ,000.
Using a balance transfer is one of the most common ways to consolidate credit card debt.
These include things like home appraisal fees, annual fees, origination fees, and more.
Before getting a new loan or line of credit to consolidate debt, consult a nonprofit credit counselor.
Use Bankrate’s credit card calculator to figure out how to pay off your balances.
We get lots of questions about debt consolidation at and that's because there are so many ways to consolidate debt.