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Home  >  Loan Types  >  How to Consolidate Credit Card Debt

How to Consolidate Credit Card Debt

If you’re struggling with credit card debt and think the chances of repaying it are slim, don’t worry – a consolidation loan might be just what you need. By using the money provided, you could shut down your credit cards and leave yourself making just one repayment a month.

Just think:

  • No more juggling payments to multiple credit card providers.
  • No more just paying interest on credit card debts.
  • No more worrying about your financial future.

With just one lender to repay each month, your financial situation should be much easier to manage. Click the button below and let’s find out if you qualify for debt consolidation.

Do you qualify?

Why choose debt consolidation?

Stop calls from creditors

Stop relying on others for money

Invoices easier to manage

Regain financial control

Have disposable income in your account

Keep track of your payments

Is it a good idea to consolidate credit card debt?

If you find a loan which ultimately leaves you paying off less in the long run, then consolidating credit card debt should be a good idea. It’s important, therefore, to review the terms and consolidations before committing and make sure:

  • Your monthly payments are affordable.
  • You will pay a lower interest rate on the loan than on your credit card debts.
  • The repayment period is not excessively long.

If your debt consolidation loan ticks those boxes, this solution should be just what you need. For more information though, take a look at our guide ‘when is debt consolidation worth it?’.

We’re actively trying to find you the best deal possible as we’re a broker not a lender. It’s in our best interests, therefore, to locate a consolidation loan which gives you value for money. If we honestly think consolidating your credit card debt is a bad idea, we’ll let you know and the reasons why.

Is it a good idea to consolidate credit card debt?

If you find a loan which ultimately leaves you paying off less in the long run, then consolidating credit card debt should be a good idea. It’s important, therefore, to review the terms and consolidations before committing and make sure:

  • Your monthly payments are affordable.
  • You will pay a lower interest rate on the loan than on your credit card debts.
  • The repayment period is not excessively long.

If your debt consolidation loan ticks those boxes, this solution should be just what you need. For more information though, take a look at our guide ‘when is debt consolidation worth it?’.

We’re actively trying to find you the best deal possible as we’re a broker not a lender. It’s in our best interests, therefore, to locate a consolidation loan which gives you value for money. If we honestly think consolidating your credit card debt is a bad idea, we’ll let you know and the reasons why.

How does credit card consolidation work?

Credit card consolidation is where you use a loan to pay off all your lenders. For example, if you have credit cards with Natwest, Halifax, and American Express, a consolidation loan would cover everything you owe to these firms.

You would use the money to close these accounts one-by-one until you’ve cleared your credit card debt.

Instead of juggling repayments to these three lenders, you only have to focus on one. This would be the company which provided your consolidation loan.

Chances are, you’ll now be making smaller monthly repayments, dealing with better levels of interest, and a shorter repayment period.

Pros and cons of consolidating credit card debt

Similar to many other financial solutions, there are pros and cons to consolidating credit card debt:

Benefits

  • Fewer payments to make each month – simplifying your finances.
  • Borrowing at lower interest rates can save you money.
  • Can repay your debts sooner.
  • With one lender, you know exactly what to repay and when.
  • Ultimately, can improve your credit score.

Negatives

  • Initially, will probably harm your credit score.
  • Does not write off credit card debt – you’ll still need to repay what you owe.

Pros and cons of consolidating credit card debt

Similar to many other financial solutions, there are pros and cons to consolidating credit card debt:

Benefits

  • Fewer payments to make each month – simplifying your finances.
  • Borrowing at lower interest rates can save you money.
  • Can repay your debts sooner.
  • With one lender, you know exactly what to repay and when.
  • Ultimately, can improve your credit score.

Negatives

  • Initially, will probably harm your credit score.
  • Does not write off credit card debt – you’ll still need to repay what you owe.

Can I consolidate credit cards without hurting my credit rating?

Initially, taking out a consolidation loan will probably damage your credit score as you’re taking out another line of credit. However, as you close your accounts – shrinking your credit utilization ratio – and start making payments on time, your score should improve.

What is my credit utilization ratio?

This is the total ratio of how much you owe divided by your credit limit. For example, if your credit limit was £10,000 and you owed £5,000, this ratio would be 50%. As a general guideline, it’s typically recommended to keep this figure at around the 30% mark.

Credit card consolidation online

In many situations, a consolidation loan can be the best way to get on top of your finances and repay credit card debt. To find out whether we can help you, get in touch through the form below.

If your loan is approved, you could have the money within just a few hours. By tomorrow, you could have paid off all your credit cards. It is highly recommended that you close your credit cards immediately upon clearing the balance to prevent continuous spending and potentially getting further into debt.

Click the button below and let’s get your application started:

Apply now

Credit card consolidation online

In many situations, a consolidation loan can be the best way to get on top of your finances and repay credit card debt. To find out whether we can help you, get in touch through the form below.

If your loan is approved, you could have the money within just a few hours. By tomorrow, you could have paid off all your credit cards. It is highly recommended that you close your credit cards immediately upon clearing the balance to prevent continuous spending and potentially getting further into debt.

Click the button below and let’s get your application started:

Apply now

Credit Card FAQs

What is the average credit card debt in the UK?

According to statistics from The Money Charity, the average person in the UK would take more than 26 years to pay off their credit card debt – assuming they made the minimum repayments. Furthermore, this type of debt stands at around £2,600 per average household.

With so many people struggling to pay off what they owe – it’s only natural to look for a solution. After all, who wants to spend over a quarter of a century paying off debts?

Can I consolidate my debts with a credit card?

You can use a credit card for debt consolidation but this solution can be risky. For example, many card providers will use an introductory offer of 0% interest. However, if your debts aren’t paid back in time, this solution could become extremely expensive. Ultimately, this might leave you in worse financial shape than before.

If you’re transferring multiple accounts to one credit card, providers will also typically charge you a fee for doing so. This amount varies but, again, can be costly.

If you pay off your debts within the introductory period, a credit card could be a cost-effective solution. Miss that window though and you might wish you’d chosen a loan instead.

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The Money Advice Service is an independent service set up to help people manage their money & offer free advice (0800 138 7777).

www.consolidationexpress.co.uk is a registered trading name of Debt Advisory Help Ltd, which is authorised and regulated by the Financial Conduct Authority and is entered on the financial services register under reference number: 784206. Debt Advisory Help Ltd is registered in England and Wales (Company Number 10832556), registered office; 1 City Road East, Manchester M15 4PN. Registered with the Information Commissioners Office, (Registration Number ZA305859).

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