Skip to content
United Settlement
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
Professional Debt Relief Programs
Logo
United Settlement
phone icon 888-574-5454
client icon Client Log In
  • More
    • About Us
    • Reviews
    • Contact Us
    • Debt Settlement
    • Debt Consolidation
    • Debt Management
    • Business Debt Relief
    • Credit Card Debt Relief
    • Debt Relief by State
    • FAQs
    • Blog
    • Sitemap
Qualify For Debt Relief
Professional Debt Relief Programs
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
United Settlement » Debt Consolidation » Credit Card
admin February 2, 2018

Credit Card Debt Consolidation

If you are burdened with high credit card debt balances spread out among a variety of different cards, pursuing credit card debt consolidation can make a lot of sense. For starters, the mere act of simplifying the number of payments from a larger number of different creditors down to as few as one creditor makes the monthly process of paying your credit card bills easier.

Not only that, but you’re also likely to save some money in the form of lower interest expense per month, which in turn will allow you to pay off more of your principal owed, thereby leading you out of debt in a shorter period. Finally, you may even be able to elevate your credit score through thoughtful credit card debt consolidation.

dollar-credit

Get a Big Picture View of Your Credit Card Debt

Begin by listing all of your outstanding credit card balances, interest rates and minimum monthly payments. Get a sense of the total amount you owe, your combined monthly payments, as well as the amounts that are applied to interest expense and principal. You should also visit https://www.annualcreditreport.com to request a free credit report from any of the three national credit reporting bureaus (Experian, Equifax and TransUnion) and examine your report for any errors that may be negatively impacting your credit score. If you have good credit, you may qualify for a low (or zero percent) interest rate promotional credit card that you can use for transferring over and consolidating high-interest rate balances.

The benefits of low interest rate promotional balance transfers are fairly obvious – if you’re able to pay off a significant amount of debt within the promotional APR window (which can be as long as eighteen months), you can save hundreds, if not thousands of dollars in interest expense. However, you should expect balance transfer fees of between 2%-5%, and the promotional APR won’t likely apply to purchases – so be careful not to use the card for anything other than balance transfers. It follows that you should get completely clear about the length of the promotional APR period and carefully manage your behavior with the card accordingly.

Consolidate the Right Way to Raise Your Credit Score

Consolidating credit card debt while taking advantage of low promotional APR offers can also raise your credit score – if you do things the right way. For starters, approximately 30% of a FICO credit score is determined through the credit utilization rate, which is the percentage of available credit that is actually borrowed by a debtor. When you secure a new card with a promotional APR attached, your total amount of available credit rises.

Therefore, all other things being equal, your credit utilization rate will drop and your credit score can rise. Note that when an existing card of yours extends a promotional APR balance transfer offer, this does not raise your aggregate credit lines. Though either instance represents a favorable option from an interest expense savings standpoint, the former is more appealing from a credit utilization and credit score standpoint.

Therefore, if possible, pursue credit card debt consolidation through the use of a new card with a promotional APR. Additionally, when transferring from existing high interest rate credit cards, it is important not to close out any of those accounts. Keep your cards open and active, as closing them will lower your aggregate credit lines and raise your credit utilization rate, thereby lowering your credit score. Furthermore, since “account age” also accounts for as much as 15% of a credit score, keeping older accounts open (especially when the credit isn’t utilized) keeps the blended age higher and further boosts a credit score.

credit-score

Examine Your Credit Card Behavior

Even if you are able to successfully consolidate your credit card debt and save money while raising your credit score, you should pause and take the opportunity to reflect on why you got into this situation in the first place. Remember, credit cards can be a very useful tool when utilized properly in the context of effective monthly budgeting, and they can help you build a healthy credit profile that can benefit you when you pursue significant additional debt in the future, such as a mortgage or auto loan.

However, credit cards should not be used for unnecessary extravagances or in a manner that builds gradually destructive spending habits. If you are saddled by high levels of burdensome credit card debt, recognize that you and you alone are responsible for any financial predicament that you currently find yourself in, and take steps to prevent the situation from worsening or repeating in the future. Write down and stick to a monthly budget that accounts for monthly cash inflows and necessary expenses – and keep your credit cards in reserve for emergencies and monthly budgetary flexibility only. In this way, you will develop the proper habits that can lead to the peace of mind that comes with a debt-free lifestyle.

Related to: Credit Card Consolidation

  • Debt Consolidation
  • Debt Management
  • Debt Settlement
  • Credit Card Debt
  • Credit Card Relief
Excellent
Based on 356 reviews

Overall 4.4 out of 5 stars

View All Reviews
December 28

Time and again, I did not know how to handle my debt

Time and again, I did not know how to handle my debt. Even when I paid my credit cards off, a few months later I was back in the same situation. But this year is different. I contacted United Settlement to see if we could work...

Buddy Ewing
December 27

Business debt relief is what I needed when I contacted the United Settlement crew

Business debt relief is what I needed when I contacted the United Settlement crew. They are committed to helping people like me who requires more help with business debt problems. I had several loans out for my deli, and these...

Lianne Finnegan
December 26

Student loan debt was the reason that I reached out to United Settlement

Student loan debt was the reason that I reached out to United Settlement. I had about 200K plus in student loan debt for my business degree. I recognized that I had to do something when I struggled to make the $1,000 student loan...

Wren Herrera
December 20

There is nothing worse than falling ill and then having to deal with super expensive medical bills

There is nothing worse than falling ill and then having to deal with super expensive medical bills that you really do not have the patience or experience to handle. I was pleased with my experience with United Settlement. They...

Jardel Shah
December 14

I took out a few personal credit cards to open my boutique

I took out a few personal credit cards to open my boutique. When than money ran out, I went on to take out more loans for my business. However, this quickly turned into a disaster. Today, I now have a mountain of debt without a...

Iain Holt
December 12

Who knew that auto loans were so negative for your credit lines

Who knew that auto loans were so negative for your credit lines? Especially, if they are not paid off right away. As a married couple, we had vowed to keep auto loan debt at bay. But, we found ourselves in a situation where we...

Avaya Adkins
December 07

I didn’t have a ton of debt when I contacted United Settlement

I didn’t have a ton of debt when I contacted United Settlement, but what I wanted from them was some information about how to handle my debt management. I knew that I needed some more information to get my business and personal...

Lucien Rojas
December 04

Federal student loans were the reason I ended up at United Settlement

Federal student loans were the reason I ended up at United Settlement. I had about $200K to pay back and I was not quite sure where to tackle that debt once I got out of school. But I reached out to that company and they provided...

Madiha Matthams
December 03

Everyone knows how horrible student loans are

Everyone knows how horrible student loans are. For me and my family, they had become more than just an annoying monthly bill. They had taken over our lives. That’s why I decided to take action and find a company like United Settlement...

Asim Horner
December 03

I wanted to be more informed about my own personal and business debt

The number one reason I chose to contact United Settlement was I wanted to be more informed about my own personal and business debt. When you have credit card debt, it can be extremely frustrating. Especially if you don’t know...

Frankie Mckee
November 29

I cannot believe I was finally able to find a company to actually help me pay off my debt

I cannot believe I was finally able to find a company to actually help me pay off my debt! I thought I would forever be chained to debt. But United Settlement offered me multiple solutions for paying off short- and long-term debt....

Justine O'Ryan
November 21

What your money can do for you.

The great reviews that you have thanks.

Jerry Conley
November 19

Dealing with high interest auto loan debt was difficult for me and my wife

Dealing with high interest auto loan debt was difficult for me and my wife. We thought we got a good deal, but it actually was a horrible loan. So, we reached out to United Settlement, and they got to work creating a debt repayment...

Cathal Brett
November 12

No one really wants to go bankrupt, and neither did my family

No one really wants to go bankrupt, and neither did my family. But fortunately, we did not have to go that route. It was our last resort, but United Settlement helped us figure out a way around bankruptcy for good. They gave us...

Aliesha Ward
November 08

I had been through about 5 different credit counseling agencies before I found United Settlement

I had been through about 5 different credit counseling agencies before I found United Settlement. I had read through their reviews and made the decision to move forward with them. I also was so impressed by their free information...

Filip Rosas
November 07

Save time and money

Just what I needed, already had a company I was working with and I switched because I was able to same some money. Brian and Alfred were really nice and helpful

Susanna Fasenmyer
November 07

As a business facing some unwanted financial difficulties

As a business facing some unwanted financial difficulties, we were at a loss for what to do next when our debt started to soar. We took a closer look at our financial situation by contacting United Settlement. These guys were very...

Warren Hutchinson
November 02

I had no clue how to create a debt management plan

I had no clue how to create a debt management plan and in fact, I didn't even know what a debt management plan was. Fortunately, I reached out to United Settlement before I had too much debt to tackle. I was so pleased with the...

Bobbi O'Quinn
October 31

Being burdened by debt is one of the biggest struggles we faced as a family

Being burdened by debt is one of the biggest struggles we faced as a family. But these people at United Settlement were very helpful in deciphering the different debts we had and then coming up with a debt consolidation planned...

Dawn Mercer
October 29

Student loan debt was my worst enemy before I ran into United Settlement

Student loan debt was my worst enemy before I ran into United Settlement. I really thought I would just have terrible credit for the rest of my life because I will never get out from underneath it. It was so stressful of an experience....

Forrest Guest
  • Contact Us
  • 241 West 30th Street
    3rd Floor
    New York, NY 10001
  • (888)-574-5454
  • [email protected]
  • Privacy Policy
  • Terms & Conditions
  • Debt Relief Services
  • Debt Settlement
  • Business Debt Relief
  • Credit Card Help
  • Debt Consolidation
  • Debt Management
  • Student Loan Help
Learn more about debt relief


    • facebook
    • Google Plus
    • Twitter
    • YouTube
    • Instagram
    • Linkedin
    • facebook
    • Tools & Resources
    • Contact Us
    • About Us
    • Blog
    • Debt Calculator
    • Frequently Asked Questions
    • Sitemap
    • Reviews
    • Client Login
    Free Savings Estimate
    Apply Here
    Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 30% including fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us.
    Copyright 2020. United Debt Settlement, LLC