Debt consolidation is a good option for those who have multiple debts and and want to combine their debt into a single monthly payment. Using a consolidation credit card can be cheaper than other options, such as a personal loan.

How to consolidate debt using a credit card

You could reduce the interest you pay on your balances by moving them to a consolidation credit card that either charges a lower interest rate or comes with an interest free period.

It will cost less to clear what you owe if you pay less interest because more of what you repay will go towards clearing the balance quicker.

If you have several outstanding credit card balances, moving them all to one consolidation credit card can also make it easier to keep track of what you owe and stay on top of your repayments. This means you are less likely to miss payments, which can damage your credit record and come with expensive fees.

Choose the best balance transfer

Our comparison table above includes many credit cards in the UK that offer a balance transfer, including:

  • The interest rate you pay on the amount you transfer over

  • The balance transfer fee, if one is charged

Balance transfer fees are a percentage of the balance you transfer to the card. For example: on a card with a 3% fee, you would pay £30 to transfer a balance of £1,000.

They also come with the same fees and charges as other credit cards, including interest and charges for missing payments or going over your credit limit.

Our table includes details of the interest rate you would pay on any purchases you make on the card and the costs of making a balance transfer on each one, which are:

  • The interest rate