You could possibly save on interest payments too, since credit cards tend to come with higher interest rates than personal loans do.
Credit card consolidation could improve or hurt your credit depending on how you use it.
Just be sure to pay off the new loan before incurring any new debt or you'll soon find yourself in the same sinking financial boat as before.
Aside from the single payment that replaces many smaller payments, credit card debt consolidation may offer you a lower monthly payment as well.
You also could look at a personal loan to pay off your balances.
When you hire a debt settlement company the first thing they will tell you is to stop communicating with your lenders or collectors.
There are a few ways you can do this, including a balance transfer, a debt consolidation loan, a personal loan or a peer-to-peer loan.
You can learn more about your options in the guide below and decide which one is right for you.
The consolidation process creates one monthly bill and lowers the payment to a reasonable amount of money.
A credit card consolidation loan combines your outstanding balances on your credit cards into one monthly payment.
The benefit is that you’ll pay off your existing debts with those credit card companies and have a simplified payment process with just one lender.
If you’ve fallen behind and have been making late payments on your credit cards, consolidating them to one monthly payment could raise your credit score as your payment history improves.
On the other hand, taking on a new loan, in general, could cause a short-term drop in your credit score because of the hard inquiry.