Best Credit Cards for Consolidating Debt

By Holly Johnson. Last updated 6 November 2017. 0 comments

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If you’re juggling multiple credit card balances and want to pay down your debt faster, it might be time to consolidate your debt. By merging your debts onto a balance transfer credit card, you can reduce the number of payments you’re making, save money on interest, and finally get rid of your debt.

While it might seem unlikely that another credit card would leave you better off, some cards were made for this purpose. Most balance transfer cards offer 0% APR for anywhere from 12 – 21 months, and a few don’t even charge a balance transfer fee.

Keys to successful debt consolidation

There are a few things to keep in mind when consolidating your debts. First, you’ll need good credit to get a good balance transfer deal. If you don’t have good credit, you may want to consider other ways to consolidate debt.

Next, make sure you look closely at the balance transfer card’s “go-to” interest rate — the APR that’s charged once the promotional period is over. Often these rates are higher than regular credit cards. If you can’t pay off the balance before the go-to rate takes effect, you may be better off sticking with the cards you have, or trying to find a low interest card instead.

Third, take a look at the balance transfer fee. Most cards charge about three percent of the amount you’re transferring. You’ll usually still come out ahead even with the fee, but be sure to check.

Most importantly, you need to have a plan for how to get out of debt and stay out. Use the no-interest period to pay off as much debt as you possibly can. Cut your budget, pick up overtime at work, and look for additional ways to put more money toward your debts each month. And don’t be tempted to use your newly freed up credit lines to rack up yet more debt. If you do that, you’ll find yourself in a debt spiral.

These offers can be a godsend if you’re ready for a change, but they only work if you make the debt repayment plan and follow through. With that in mind, we’ve chosen some of the best cards for consolidating your debt. When deciding on a card, remember that you cannot transfer balances from one card to another card from the same issuer. You’ll need to go with a different bank for your balance transfer card.

BankAmericard® Credit Card

credit cardThe BankAmericard® credit card not only offers a 0% intro APR for 15 billing cycles on purchases and balance transfers (balance transfers have to be made within the first 60 days of account opening), but its APR after the intro period is a low 12.99%-22.99% variable. So this is a good card to consider even if you don’t think you’ll be able to pay off the entire balance within the intro period. Its APR is likely lower than what you currently have, so you’ll still keep saving on interest while paying off the balance.

There is also a $0 Intro balance transfer fee during the first 60 days of account opening. After that, the fee for future balance transfers is 3% (min. $10). There is no annual fee for the card.

Click here to learn more and apply for the BankAmericard® credit card today!

Citi Simplicity® Card - No Late Fees Ever

The Citi Simplicity® Card - No Late Fees Ever from our partner Citi comes with a whopping 21 months of 0% intro APR on purchases and balance transfers. That’s almost two years of zero interest on your balance. This card also comes with no annual fee and no late fees or penalty APRs if your payment arrives after your due date.

A balance transfer fee equal to 3% of your balance ($5 minimum) does apply, and you also need to transfer your balances within the first four months of card ownership to qualify for the special 0% APR introductory offer. Once the 21-month 0% intro APR window closes, your interest rate will be 14.99%-24.99% variable.

In addition to the stellar introductory APR, the card offers additional Citi perks like extended warranties and Citi Price Rewind.

Click here to learn more and apply for the Citi Simplicity® Card - No Late Fees Ever today!

 

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Best Credit Cards for Consolidating Debt

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