Debt Consolidation Using Credit Cards

How to Use Your Credit Card to Consolidate Debt

If you aren’t able to qualify for arrangements to consolidate your debt at reasonable terms, you can try other options.

One such arrangement is consolidating credit card amounts onto a single card with a desirable interest rate.

Once you make the switch, you can make large monthly payments according to your financial situation.

Consider that, by making high payments, you can get rid of the balance quickly without incurring a large amount of interest from multiple cards.

Sometimes, to incentivise customers, credit cards offer promotions for low interest rates.

You can use this as a chance to consolidate all of your debts.

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Bear in mind that the promotional rate is usually time sensitive.

This means you would have to pay off the balance while it remains in effect, lest you return to vulnerability to a high rate of interest.

However, if you are unable to access a low interest rate due to faulty credit, there are other options.

These include debt consolidation loan arrangements, line of credit consolidation, debt settlements, or consumer proposals.

If you incline towards credit consolidation, understand the benefits and pitfalls, including:


  • You can get a low interest card during a promotion and pay off the debt during that time.
  • Consolidating debt makes it easier to understand and keep track of your finances.
  • You get better flexibility for payments, especially if you pay over minimum, since if something comes up, you can reduce your payment that month.


  • Most who want consolidation loans can’t access low rates on their credit cards.
  • Promotional rates of interest are short-lived in most casts.
  • Interest rates after promotions are typically high.
  • Without a budget, you can easily slip back into a tricky financial situation.


The best way to pay off your debts is to consolidate your loans and create a viable budget.

Ensure that you shell out less than you bring in, and are prudent in all your financial matters.

Consider downsizing whenever possible and exercising frugal behavior where you can.

Until you get out of debt, the best course of action is to focus on paying off your creditors.

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