Combining several debts into single balance on a credit card is known as debt consolidation. Using a debt consolidation credit card can be cheaper than other options, such as a personal loan.

Why consolidate debt?

Keeping track of debt spread over several credit cards or loans can be complicated and difficult. Debt consolidations allows lenders to combine that debt and then pay it off with a single monthly payment. Not only does it simply you debt payments, it can be cheaper as you'll pay less in interest.

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.

This guide explains how to set up a balance transfer

Choose the best balance transfer

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

  • Cards that offer a 0% interest rate for a promotional period

  • Cards that let you pay off the transferred balance at a set interest rate

Enter your total outstanding card balance and your current credit card provider at the top of the table. We will show you how much each balance transfer deal could save you in the time it would take you to pay off your balance.

How much does a balance transfer cost?

The main costs are:

  • 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. This fee is usually added to your balance, so the total balance you pay back will be £1,030.

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

  • Details of any interest free period offered

  • The balance transfer fee, if one is charged

This guide explains how much balance transfers cost.

Can you use a credit card to consolidate other debts?

Yes, you could pay off an overdraft or loan using a money transfer credit card.

They let you send money to your bank account with 0% interest for several months. Here is how to make a money transfer.