8 strategies to consolidate credit card debt

It can be harder to pay numerous credit card balances than it is to pay down a single debt.

Having multiple outstanding balances can also hurt your credit score, compared to having a single creditor. Thankfully, there are credit card consolidation options that can make paying off your debt much easier.

Balance Transfer Credit Cards

A balance transfer credit card allows you to transfer balances from other accounts. Using a balance transfer card could be one of the easiest credit card consolidation strategies, as you can simply apply for a new credit card online.

Credit Card Consolidation Loans

Another potential strategy is a credit card consolidation loan, which is an unsecured personal loan from a credit union, bank or online lender. These loans will have fixed rates and a fixed payment, giving you some predictability.

Home Equity Loan

A home equity loan allows you to borrow a lump sum based on the equity of your home, which is the difference between how much your home is currently worth and how much you owe. You could then use these funds to pay off your credit card debts.


A HELOC, which stands for home equity line of credit, is similar to a home equity loan, but it’s a revolving line of credit. In many cases, this allows you to make monthly payments for your interest only, and again, your interest rate will be lower compared to an unsecured loan.

401(k) Loan

This option can offer a lower interest rate than a personal loan, and it doesn’t require a credit check. And because you are essentially both the lender and the borrower, it won’t affect your credit.