One late fee leads to another. Then another. Before you know it, your budget is tipping over like a row of dominoes. Sound familiar?
If credit card debt is stacking up faster than you can pay it down, consolidation might be your reset button. Let’s explore how it works — and how it could actually help your credit.
You might not need to consolidate every time you carry a balance, but here are a few signs it could be the right move:
Debt consolidation can help you swap chaos for clarity. The key is choosing the right path.
Consolidating debt means rolling multiple balances into one payment. This can simplify your finances and potentially save you money.
The best option depends on your situation, goals, and how quickly you plan to pay things off.
A balance transfer lets you move your credit card balance to a new card with a low or 0% intro APR for a set period.
A personal loan gives you one lump sum to pay off your credit cards. You then make one fixed monthly payment.
💡 Pro tip: There are two types of personal loans. Secured loans use collateral, like your car or savings, and often offer lower rates. Unsecured loans don’t require collateral, but the rates are usually higher.
It depends on how you do it. A small dip is normal when you apply for a new card or loan, but it’s usually temporary.
Over time, consolidation can actually help your score, especially if it allows you to make payments on time, lower your credit utilization, and avoid missed due dates. The key is sticking with your plan and not adding more debt while you pay things down.
Ready to get started? Here’s what the process looks like:
Write down what you owe, the interest rate, the due date, and the minimum payment for each account. This helps you see what you're working with and which debts are costing you the most.
Tally your balances to get a clear idea of what you’re trying to pay off. Whether you’re considering a loan or balance transfer, this number is key for comparing your options.
Need more time and structure? A personal loan might be the way to go.
Want to wipe it out fast and avoid interest? A balance transfer could work (if you have good credit). Choose the path that fits your budget, credit score, and timeline.
Run the numbers through a debt consolidation calculator. You’ll see what your new monthly payment might be and how much interest you could avoid.
Once you’ve picked the right option, apply and use the funds to pay off your balances. Set up automatic payments to stay on track.
To protect your progress, avoid adding new charges while you’re paying things down. Think of this as a reset, not a restart.
When life throws you curveballs, the right support can make all the difference. CCCU’s Life Happens Loan is designed to help you move forward with fewer payments, less stress, and more breathing room in your budget.
You'll get:
Whether you’re managing one card too many or just want a fresh start, we’re here to help!
Try our debt consolidation calculator to see how much you could save, or connect with our team to find a solution that fits your goals.