They can also often lower your interest rate so that more of your monthly payments go towards your amount owed rather than interest, which gets you out of debt faster.
Another major component of this type of plan is that most, if not all of your credit cards, will be closed during your repayment period, so you won’t have any access to credit.
This can affect your credit score during the repayment period because of your low credit utilization ratio.
To get you started, we’ve pulled together some of the most popular methods for consolidating credit card debt, along with explanations of how they work and who they can benefit.
If you’re within striking distance of paying off the bulk of your credit card debt, you might want to consider consolidating your various balances onto a single credit card.
Otherwise, you might end up paying even more money in interest than if you had simply paid each balance separately each month.