Be aware, however, that balance transfer cards often charge a transfer fee (usually 3%), and some even have annual fees.Another DIY way to consolidate your credit card debt would be to stop using all your cards and pay using cash instead.Learn More About Management Plans A Debt Consolidation Loan (DCL) allows you to make one payment to one lender in place of multiple payments to multiple creditors.A debt consolidation loan should have a fixed interest rate that is lower than what you were paying, which reduce your monthly payments and make it easier to repay the debts.
A consolidation loan should reduce your interest rate, lower your monthly payment, and give you a practical way to eliminate debt.
The best way to consolidate a large amount of credit card debt (anything over ,000) without taking on a new loan, is to enroll in a Debt Management Plan.
Most financial experts agree that a Debt Management Plan (DMP) is the preferred method of debt consolidation.
There are several types of DCLs, including home equity loans, zero-interest balance transfers on credit cards, personal loans, and consolidating student loans.
It is a popular way to bundle a variety of bills into one payment that makes it easier to track your finances.