How to Combine Credit Card Balances into One Payment

If you have three credit cards with three different due dates, three different interest rates, and three minimum payments, it is easy to miss a payment or feel overwhelmed. Combining your balances into one single payment can simplify your finances and help you get out of debt faster.

Here are the two most common ways to do it.

Method 1: Balance Transfer to a 0% APR Card

This is often the best option if you have good credit. You open a new credit card that offers a 0% introductory APR on balance transfers for 12 to 21 months.

You then transfer the balances from your old cards onto this new card.

• Pros: You pay zero interest during the promo period, allowing 100% of your payment to go toward the principal.
• Cons: Most cards charge a 3% to 5% balance transfer fee. If you don't pay off the balance before the promo ends, the interest rate will jump to 20%+.

Method 2: Debt Consolidation Loan

You take out a personal loan from a bank or online lender, use the money to pay off all your credit cards, and then make one monthly payment to the loan company.

• Pros: Fixed interest rate (usually 7% - 15%), fixed payoff date (e.g., 3 to 5 years). It converts revolving credit card debt into an installment loan.
• Cons: Requires a decent credit score to get a good rate. There may be an origination fee.

Why Combining Balances Works

Credit card interest rates are notoriously high, often 22% to 29%. By moving that debt to a lower-rate loan or a 0% card, you stop the bleeding. You also eliminate the risk of missing a due date, which can trigger late fees and penalty APRs.

The Golden Rule

Whichever method you choose, you must stop using the old credit cards. If you consolidate $10,000 of debt but then run up $2,000 on the newly paid-off cards, you are right back where you started, but now with an extra loan payment.

Calculate Your Payoff Timeline

Want to see how long it will take to pay off the combined debt? Use our Credit Card Payoff Calculator. Enter your combined balance, the new interest rate, and your monthly payment to see your debt-free date.