The best way to consolidate a large amount of credit card debt (anything over ,000) without taking on a new loan, is to enroll in a Debt Management Plan.
Most financial experts agree that a Debt Management Plan (DMP) is the preferred method of debt consolidation.
Be aware, however, that balance transfer cards often charge a transfer fee (usually 3%), and some even have annual fees.
Another DIY way to consolidate your credit card debt would be to stop using all your cards and pay using cash instead.
If you have a very good credit score (700 or above), the best way to consolidate credit card debt is to apply for a 0% interest balance transfer credit card.
The 0% interest is an introductory rate that usually lasts for 6–18 months.
There are several types of DCLs, including home equity loans, zero-interest balance transfers on credit cards, personal loans, and consolidating student loans.
However, at the end of the 3-to-5 year process, you should be debt free, which definitely improves your score.That's where debt consolidation and other financial options come in.Consolidate Your Debt Now Debt consolidation is combining several unsecured debts — credit cards, medical bills, personal loans, payday loans, etc. Instead of having to write checks to 5–10 creditors every month, you consolidate bills into one payment, and write one check.Any savings could be used to start an emergency fund to help prevent a future financial crisis.Banks and credit unions are good places to ask about consolidation loans, but online lending sites may be a better place to borrow. Start by listing each of the debts you intend to consolidate — credit card, phone, medical bills, utilities, etc.