Can I consolidate debt with a credit card?

There are a number of ways to consolidate your debts. A common option is a debt consolidation loan, which effectively enables the borrower to replace multiple debts with just one loan, and in some cases reduce their monthly outgoings.

However, another increasingly common way of consolidating debt is with a 0% balance transfer credit card.

Debt consolidation with credit cards

Done correctly, consolidating your debts with a 0% balance transfer credit card can allow you to pay off your debts without paying any interest whatsoever (although most card providers charge a balance transfer fee of around 3% of the balance transferred) - meaning you could pay off your debts more quickly.

This can be especially helpful if you`re consolidating high-interest debts, as it could significantly reduce the amount you pay.

The 0% balance transfer period will be time-limited - usually up to around 15 months. This alone should give you a good opportunity to pay back a good portion of your debts without interest, but if you then switch to another 0% card you can carry on repaying your debts in this way. Many people do this with a lot of success.

Are there any downsides?

There are a few disadvantages to consolidating debt with a credit card, compared with a debt consolidation loan. For one, there will be a less structured repayment period with a credit card - you will be responsible for deciding how much you pay each month (above the minimum payment).

This flexibility may be a good thing for some people, but it does mean you`ll have to stay disciplined - and some people find this difficult to do, meaning they end up repaying their debt more slowly than they intended.

The other disadvantage is that if for any reason you struggle to switch to another 0% balance transfer card at the end of your existing deal, you will have to start paying interest, and the rate is likely to be much higher than on a personal loan. You may well be able to switch to another deal fairly easily, but you shouldn`t rely on this happening.

In the short term, a 0% balance transfer credit card can be a great way of consolidating debt. But if you have debts that may take longer (than the 0% period) to repay, you should make sure you have a back-up plan in case you can`t switch to a similar deal later on.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

Your Situation

Your total debt: Please select... £2,000 to £7,000 £7,000 to £12,000 £12,000 to £19,000 £20,000 +

Your location: Please select... England Wales Scotland Northern Ireland

Employment status: Please select... Employed full time Employed part time Self employed Unemployed Retired Student

Your email: (optional)

Your Details

First name: Surname: Telephone 1:

Telephone 2: (optional)

I agree to the privacy policy:

Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.

We'll give you an on-screen recommendation and call you. One of our advisors will be in touch to answer any questions you may have about your results.

Your privacy is important to us. All correspondence is held in the strictest confidence and we will only request information required to find your debt solution.

Tags: debt consolidation, credit card, consolidate, consolidate debt, credit card debt, credit card debt consolidation, balance transfer

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.