Options (with who it fits)
- 0% Balance Transfer (12–21 mo): Strong credit, can pay off fast, low fee (3–5%).
- Personal Loan (fixed APR): Good credit, need predictable payments 2–5 yrs.
- HELOC/Home Equity: Homeowners seeking low rates; risk: home as collateral.
- Debt Management Plan (DMP): Through nonprofit; lowers rates, not a loan.
Steps
- Pull your credit reports + FICO/VantageScore.
- Calculate payoff time and compare APR + fees.
- Use a debt consolidation calculator (we provide one).
- Apply for your chosen option; don't close old cards immediately.
- Set autopay + payment reminders; avoid new spending until paid.
Pitfalls
- Fees wiping out savings (BT fees, origination).
- Consolidating without fixing spending triggers.
Frequently Asked Questions
Will consolidation hurt my credit?
There may be a small, short-term dip; on-time payments usually help over time.
Is it always cheaper?
Only if the effective APR and total fees are lower than current blended APR.
Check Your Savings
Try our Consolidation Calculator to check if you'll actually save.