Credit cards make everyday spending simple, but carrying balances across several cards can get complicated fast. High interest rates, multiple due dates and the risk of missed payments can all make it harder to stay ahead. If you’re looking for how to get out of credit card debt, debt consolidation can bring everything together into one manageable plan.
Below, we’ll walk through how debt consolidation works, the best ways to consolidate credit card debt and tips to help you stay on track long term. You’ve got this!
Debt consolidation combines several credit card balances into one loan, which may offer a lower rate than your current cards. This can help you save money on interest and simplify your monthly payments. Instead of juggling multiple due dates, you make one payment, which can make budgeting feel much more manageable.
For example, imagine you have balances on three high-rate cards. You could use a personal loan to pay them off. The loan would give you a fixed payment each month and a clear payoff schedule. That structure helps many people stay motivated and make steady progress.
You can also use our debt payoff calculator to see how different payoff timelines or interest rates may change your total cost.
Debt consolidation means combining multiple balances into one new loan or payment plan. You still repay what you owe, just in a more manageable way. Debt settlement is different. It involves negotiating to pay less than you owe, which can come with fees and may impact your credit.
In simple terms:
Debt consolidation: simplifies payments and may lower interest, while repaying the full balance over time
Debt settlement: attempts to reduce the payoff amount, but can be risky and may harm your credit
If you’re unsure which approach is best for your situation, consider speaking with a financial counselor before deciding.
The right strategy depends on your credit, your goals and how quickly you want to pay off what you owe. Here are four of the most common ways people consolidate credit card debt.
A home equity loan1 is secured by your home’s equity as collateral, which often means a lower interest rate than many other borrowing options. Your rate and monthly payment are typically fixed for the life of the loan, making budgeting more predictable.
Before choosing this option:
You’ll need enough equity in your home, often at least 20%
Closing costs typically run between 2% and 5% of the loan amount
Your home is used as collateral, so missed payments could put your home at risk of foreclosure. This impact becomes exponential if you continue to accrue more debt after consolidating.
If you plan to move soon, this option may be less ideal since you’ll usually pay off the loan when you sell your home 🏡
A personal loan2 is a straightforward way to combine multiple credit card balances into a single payment. You’ll know exactly what you owe each month thanks to a fixed interest rate and a set repayment schedule. Because personal loans are unsecured, you don’t need to provide collateral.
Benefits include:
One predictable monthly payment
Interest rates are often lower than credit card rates
Immediate payoff of revolving balances, which may help your credit score
Ensure you make a plan for future spending first. If you consolidate your debt but continue to accrue more, your situation will only worsen over time. Consolidation is not the "cure" - a spending plan is! Talk to a trusted financial counselor to make sure you understand your cash flow situation and spending habits to avoid racking up more debt.
To qualify for the best rates, you’ll generally need a solid credit history. To get a sense of your monthly payment or payoff timeline, try our personal loan calculator.
A balance transfer lets you move your existing balances to a credit card3 with a low introductory APR for a limited promotional period, depending on the card. With a lower rate, more of your payment can go toward the principal, helping you pay it down faster.💳
A few things to think about:
Most balance transfer cards charge a fee of 3 to 5 percent
Strong credit is usually required to qualify
If you need more time than the promotional period allows, the remaining balance could become expensive
If you’re curious how long it may take to pay off your current balances, our credit card calculator can give you a quick estimate.
Consolidating your balances is a big step toward getting out of credit card debt, but staying on track afterward is what keeps your progress moving forward. These dos and don’ts can help you build strong habits, protect your credit and avoid slipping back into old patterns.
Your payment history has one of the biggest impacts on your credit score. Whether you consolidate with a personal loan, home equity loan or HELOC,4 making each payment on time keeps your payoff plan on schedule. With a home equity loan or HELOC, timely payments also help you avoid the risk of foreclosure.
To make things easier, consider setting up automatic payments through online banking. Many people find that removing the need to remember due dates makes a huge difference in sticking to their plan.
Even after you pay off your cards, it can be helpful to leave those accounts open. The age of your credit history is an important factor in your credit score. Older accounts show lenders that you’ve managed credit over time, and that history works in your favor.👍
If the cards have an annual fee, it’s worth looking into downgrading to a no-fee version of the card if available.
Unexpected expenses happen, and having savings set aside gives you a safety net so you don’t have to rely on credit cards when emergencies pop up. Medical bills, car repairs and home maintenance can add up quickly.🛠️
Many financial experts suggest saving three to six months of living expenses, but don’t feel discouraged if that seems out of reach. Even a small emergency fund can help you avoid rebuilding balances during stressful moments.
A budget doesn’t have to be complicated to be effective. The goal is simply to stay aware of where your money goes and make sure your spending lines up with your priorities. As you build your plan, it can help to keep an eye on your debt-to-income ratio since lenders use this number to understand how much of your income goes toward debt each month. Lowering your DTI over time can make it easier to reach future financial goals! One popular method is the 50/30/20 rule:
Finding a system you can maintain makes it easier to stay out of debt over the long term.
If you’re wondering, “can I still use my credit card after debt consolidation?”, the answer is yes, but in moderation. Using a card for small purchases is usually fine as long as you pay the balance in full each month.
What you want to avoid is building a new balance on top of the loan you took out to consolidate in the first place. That can put you right back where you started. Staying mindful of your spending habits can help you keep your progress moving in the right direction.
There’s no shame in spending within your means! But if you notice emotional spending, impulse buys or certain habits growing debt, being aware of those triggers can help you avoid repeating them.
Tip: Try tracking your spending for a month or two can show patterns you might not notice day to day.🛍️
While it may feel good to “cut ties” with past debt, closing accounts can actually hurt your credit score by shortening the length of your credit history and lowering your total available credit. Keeping accounts open but unused can give your score a helpful boost over time.
We offer several options that can help simplify and manage credit card debt, including Copper State CU Personal Loans, Home Equity Loans and Credit Cards with competitive rates. We also partner with GreenPath™ to provide confidential financial counseling designed around your unique situation.
As you take your next step, remember you don’t have to figure it out alone. As a member, you have access to GreenPath™, a national nonprofit that provides free, confidential, one-on-one debt counseling, plus debt management services and financial education tools tailored to your situation. Their NFCC-certified counselors can help you review your options, build a realistic plan and stay on track with your goals—without pressure.
Take control of your debt with low, competitive rates that may help you save when transferring a balance.
Ready to explore your options? A personal loan can help you roll multiple balances into one predictable monthly payment.
Already considering a balance transfer? Compare credit card options with competitive rates that may help you save.
Own a home with available equity? A home equity loan may help you consolidate higher-interest debt.
This article is intended to be a general resource only and is not intended to be nor does it constitute legal advice. Any recommendations are based on opinion only. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval.
1APR=Annual Percentage Rate. Rates, terms and conditions are subject to change and may vary based on credit worthiness, qualifications and collateral conditions. All loans are subject to approval. Rate shown is for 60 month term. 120 and 180 term loans are also available. Contact us for details. Minimum amount: $15,000 - Maximum amount: $350,000. Property insurance is required and will be verified. No prepayment penalty. An origination fee of $300-$800 will apply based on your total loan amount. Membership is required.
2All loans subject to approval. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications and collateral conditions. Membership is required.
3The creditor and issuer of these cards is Elan Financial Services, pursuant to a license from Visa U.S.A. Inc.
4All loans subject to approval. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications and collateral conditions. Membership is required.