Consolidating and eliminating credit card debt

Here are three of the best ways to consolidate credit card debt, and the pros and cons of each method.It's somewhat ironic, but credit cards are one of the best tools for consolidating and eliminating credit card debt.My view is that 0% balance-transfer cards are the way to go.The ideal balance-transfer strategy is as follows: Open a 0% balance-transfer card with low or no balance-transfer fees, transfer your balances to the card, and then file the physical card away somewhere it's inconvenient to access.In addition, a home-equity loan is an incredibly risky way to consolidate debt.

In addition, it can take several weeks or months to get through the underwriting process, whereas a personal loan or balance-transfer card can be opened and ready to use in a couple of days, certainly less than a week.

Start with Chase Slate A personal loan may be a good way to consolidate and pay off credit card debt, but it's an inherently more expensive way to pay down debt than a balance-transfer credit card.

According to data from the Federal Reserve, the average interest rate on a 24-month personal loan was just over 10% per year in February.

That's substantially higher than a 0% APR available from several of the best balance-transfer offers.

Of course, lower rates are available for borrowers with excellent credit scores.

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