How to Compare Credit Card Debt Consolidation

List your existing balances

Record each card’s balance, APR, required payment and any promotional deadline. Choose a realistic repayment amount and estimate the timeline for your existing plan before comparing a new loan.

Compare complete repayment plans

For a consolidation offer, record the APR, fees, net funds received and total scheduled payments. Check that the proceeds cover the balances you intend to repay. A lower payment may reflect a longer repayment period rather than a lower total cost.

The CFPB’s consolidation guide explains this tradeoff and recommends reviewing spending, contacting creditors about payment changes and considering nonprofit credit counseling.

Confirm how existing accounts are paid

Ask whether funds go to you or directly to eligible creditors. Confirm account restrictions and processing times. Keep making required payments until each creditor confirms the relevant balance has been paid.

For example, Discover’s personal loan profile explains that direct creditor payments exclude Capital One accounts, including Discover cards. Check the full provider terms for your intended accounts.

Evaluate a balance transfer separately

Read the transfer fee, promotional period, post-promotion APR and payment requirements. Model the amount you would need to pay before the promotion ends. Confirm that the accounts and transfer amounts are eligible before relying on the offer.

Our balance transfer comparison includes product conditions and links to card details. A card promotion and a personal loan should be compared using their own payment schedules and fees.

Plan what happens after consolidation

Write down how you will cover the new payment and avoid adding balances that undermine the plan. Consider whether a change in spending, a creditor arrangement or another approach could address the problem without new borrowing.

Compare personal loan profiles, use the debt payoff calculator and review the consolidation guide before deciding.