How to Consolidate High Interest Credit Cards
- 1). Gather your credit cards and credit card statements. Make a list that includes the balance on each card, along with the interest rate on the card and the minimum monthly payment.
- 2). Add up what you owe on each card to get the total you need to pay off all of the cards. This is the loan amount you will need to borrow. Resist the urge to borrow extra money--this could tempt you to spend too much.
- 3). Approach the loan officer at your bank or credit union about taking out a debt consolidation loan. If you own a home, you might be able to get a lower interest rate by using a home equity loan, but keep in mind that this can put your home at risk if you fail to make the payments on a timely basis.
- 4). Complete the loan application and wait for the bank or credit union to approve it. Use the proceeds from the loan to immediately pay off each of your credit cards.
- 5). Cut up all but one credit card and contact the credit card companies to cancel the accounts. Keep one credit card for emergency purposes, and do not use it for anything but a true emergency.