Best credit card consolidation loans -Learn more about credit card consolidation

Credit card debt can be overwhelming, but with dedication and good financial habits, it’s possible to pay off your credit card debt faster than you think.

Learn more about credit card consolidation now 

multiple credit cards?

A credit consolidation loan allows you to pay off and combine multiple credit cards. Rather than dealing with multiple payments and deadlines, you can combine everything into one simple monthly payment. However, for faster debt repayment, try biweekly payments (you’ll make 2 extra payments a year compared to semi-monthly). Either way, a credit card consolidation gives you a structured repayment schedule helping you stay on track and in control. Credit card consolidation is not a completely easy process.

Tip: Choosing a secured loan for debt consolidation can help you access lower interest rates, ultimately helping you pay off your credit card debt faster.

 

Here are other 7 tips to help you pay off your credit card debt faster:

Stop using your credit cards

You’ll never pay off your credit cards if you keep racking up a balance. Plus, the only way to truly get out of debt for good is to change the spending habits that created debt in the first place. Start by taking your credit cards out of your wallet so you’re not easily tempted. If you need extra accountability, ask a trusted friend or family member to hold on to them. Avoid closing your credit card unless absolutely necessary, since it could affect your credit utilization and ultimately impact your credit score (learn more on credit use here).

 

Earn more income and increase your credit card payments

Find opportunities to earn more money – ask your boss if you can work overtime, get a part-time job or ask friends or family if they need help with chores in exchange for a fee. Then, dedicate all of your extra income to debt repayment, to make the most effective use of your budget.

 

Create a payment schedule

First, pick a date that you would like to be debt-free. Then work backward to see how much you need to pay each month to reach that date (this calculator tool can help). The longer you take to pay off your credit card, the more affordable your payments will be and vice versa. Make adjustments until you find the right balance between affordable payments and a realistic timeframe. If you struggle to keep yourself accountable to a payment schedule, consider a consolidation loan.

 

Automate your credit card payments

We recommend setting up automated payments that go toward your credit card balance on the day you get paid. You won’t have an opportunity to notice the money in your account, and over time you’ll learn to adjust to the lower balance in your bank account on payday.

 

Visualize your progress

There’s a reason why athletes visualize themselves winning – it really works! Make a drawing of a thermometer with your goal repayment at the top, zero at the bottom and fill it in as you contribute. Get as creative as you want, and look at it often to keep yourself motivated (Thanks to one of our social media followers who submitted this tip during our Best. Money Tip. Ever. Contest).

 

Find a cheaper credit card (with a low or no annual fee)

Some annual credit card fees can be hundreds of dollars – that’s a lot of extra money added to your balance every year. Is the fee really worth the rewards you receive in return? For many, it’s not. Consider researching new credit card options that still offer rewards but for a lower cost.

 

Learn responsible spending habits

Paying off your credit card balance is a great step toward a better financial future. However, if you don’t learn how to use your credit card responsibly, you’ll end up back where you started. Looking for money management tips? You’re in the right spot – check out our other blog articles for budgeting advice, money-saving tips and more!

 

Why it’s so beneficial to pay off credit card debt:

  • You’ll improve your credit score: Do you find it difficult to keep up with credit card payments? Late or missed payments negatively impact your credit score, while regular on-time payments are reflected positively on your credit report.
  • You’ll lower your credit utilization (which will help improve your credit score even more): regularly carrying a balance of more than 25% of your credit limit can hurt your credit score – the lower your balance, the better your credit utilization
  • You’ll lower your debt to income ratio: keeping your debt to income ratio lower than 36% can help you qualify for a broader range of borrowing options. Not sure what debt to ratio means? We break it down for you in this article.
  • You’ll maximize cashback and rewards: if you make late payments or miss payments entirely, you can risk losing rewards. Once you pay down credit card debt and are using your credit card responsibly, you can take advantage of rewards again.

Paying down credit card debt may seem daunting, but it’s not impossible. It’s okay to take small breaks from debt repayment (if needed), and don’t forget to celebrate your milestones. Treat yourself to a coffee, or another small purchase for every $ 1,000 you pay off.

Interested in consolidating credit card debt? Try our online loan quote to see if a debt consolidation loan is right for you. You can find out how much money you could qualify for and what your payments might be. It’s quick and won’t impact your credit score.

Leave Your Comment Here