How to consolidate your credit card debts

So you might have a little, irksome debt on your credit card, that’s nothing to be ashamed of. You probably have some good stuff to show for it. Or not. Either way, the point is you have credit card debt and now you have to deal with it.

And no, paying the minimum repayments each month is not dealing with it. You will barely be covering the interest, so your debt won’t only not go away, it will grow.

Consolidate your credit cards debts and save

The best way to give your debt a good kick in the butt is to consolidate your cards. Transfer your debts to one card, but not just any old card – to one that has a 0% interest rate. Yes, you heard right: 0%. But, before you fall off your chair, note that’s an introductory rate. But it can last up to one year. That’s a whole year that you can focus on paying off your debt rather than just the interest.

Or, you can transfer your balances to a card that offers a standard low interest rate for the life of your balance. The difference with what you currently pay could add up to hundreds of pounds per year.

Find the perfect credit card to transfer your balance to.

Finding the best credit card for consolidation

This is where we come into the picture. We save you hours – days, even – of research. We work with uSwitch.com to provide you with an impartial comparison of every single credit card on the UK market. And, the best thing – it’s free.

The best credit card for you is different to that of your best mate or your mum. That’s why we ask you for a few details first, like what existing cards you have and the corresponding balances. Then we can work out which card you should transfer your balance/s to. We show you how much you can save and point out the things you need to know.

Credit card consolidation: the maths

Want to know exactly how much you can save by consolidating your cards? Your comparison will show you, but here’s an example.

Let’s say you had a debt of £2,000 on your credit card with a rate of 16.9%. Pretend you pay £100 off it each month.

If you kept making the same repayments but transferred your balance to a card with an introductory 12-month 0% rate, you would save £252 over the year. Or, you could opt for a low standard rate for the life of your balance. Say you transferred it to one with a 5% rate, you’re still going to save £221 over the year.

You don’t have to be Einstein to see it makes mathematical sense to consolidate your debts to a better credit card.

Tips for paying off your credit card debt

• Consolidate your debts to one card
• If you get an introductory 0% rate, be aware of the standard APR you will be charged once your deal runs out
• Think about transferring your debt to another card once your 0% introductory offer runs out
• Pay more than the minimum repayments
• DON’T use your balance transfer card for new purchases. They won’t fall under the 0% rate. If you need a card for purchases, get a different one.

Consolidate your credit card debts now.