Why You should Put All Card Debt Together and Pay Less

Do you have several different credit cards with outstanding balances? You might think that your debt is untouchable, but it doesn’t have to be. Putting all of your card debt together can have a surprisingly beneficial effect on reducing the overall debt balance and making interest payments easier to manage – and pay less.

Benefits of Combining Credit Card Debts

Combining debts from several credit cards into one loan has the following benefits:

  • Lower interest rate: Credit cards are often subject to very high rates of interest, making it difficult to pay off the actual debt without also spending a large proportion of your repayments on interest. Combining all of your outstanding debt into one loan can significantly reduce the rate of interest you pay.
  • Easier repayment plan: When the debt balances are combined it can make setting up a repayment plan easier, and save time and effort. It can also be simpler to find the best repayment plan if all of the debt is under one roof.
  • Lower monthly payments: By combining debts into one loan, you may be able to lower your monthly payments. This can have an effect of reducing the burden of debt and making repayment more manageable.

Options For Combining Credit Card Debts

There are two main options for combining credit card debt:

  • Balance Transfer: A balance transfer is the transfer of all or part of the debt from one or more cards to another. This may involve moving the balance to a card with a lower interest rate, or a card with a promotional deal with a 0 percent rate for a set period of time.
  • Debt Consolidation Loan: A debt consolidation loan is when you take out a single loan to pay off the outstanding balances on all of your cards. This loan is then subject to one interest rate, which is usually lower than the average rate on the outstanding balance. Repayment is then made through fixed monthly payments over a set number of years.


In summary, combining credit card debts can have significant benefits for reducing the total debt and creating a simpler repayment plan. There are two main options for combining card debt – a balance transfer and a debt consolidation loan – so it is important to evaluate both options before making a decision. By combining card debt and paying less, you can save money on interest and make the repayment process much quicker and easier.

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