When you have too much credit card debt, it can feel like a hole that you just can't get out of. That's why many people use an open line of credit or a credit account without a credit limit to pay off their credit card debts and then just pay off the one account. One monthly payment may be easier to keep track of and will also likely help you save on interest fees.
Step 1
Contact a credit counselor or banker to see what your options are for consolidating your debts into one account. Make sure that your credit card accounts allow debt consolidation and balance transfers without hefty fees.
Step 2
Go over the fine print for all of your credit cards, taking note of fees and interest rates, in particular. You will want to make sure that the balance transfer rate you see connected to your account is not promotional or introductory.
Step 3
Apply for a line of credit. This can be either a debt consolidation loan or a new credit card with a higher credit limit and lower interest rate. Once your line of credit or new credit cars is approved, you can begin transferring outstanding balances from other accounts.
Step 4
Initiate the balance transfer process, moving your outstanding balances from current credit cards to a line of credit. You can do this by accessing the credit card account you want to transfer online and selecting the option "Transfer Balance." Otherwise, you can call your creditors and request they transfer your balances to the new line of credit. The line of credit issuer pays off your credit card debts in full, and you're then responsible for just one payment a month.
Step 5
Call each credit card company after seven to 10 days have passed to make sure the balance transfers have been completed and that you no longer owe anything on your credit cards. It might be tempting to close these accounts, but it's best to leave them open. Open accounts with little or no balances look good on your credit report and will help offset your debt consolidation.
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