The process of consolidating multiple credit cards can be a fairly tedious and lengthy one. It is more than likely, however, that the benefits of doing so will far outweigh any inconvenience in the medium to long term. Having multiple credit card balances outstanding is likely to be a significant drain on financial resources and reserves, therefore rectifying the situation is advisable at the earliest opportunity.
The first step to consolidating multiple credit cards is to obtain an aggregate total of the balances outstanding. This can be done by referring to the most recent statement in each instance, contacting each credit card issuer by telephone, or by utilizing online banking, where it is available. A figure will thus be established of how much is required in total to consolidate the credit cards.
The most efficient way to consolidate multiple credit cards is with a personal loan. The interest rate charged on the loan is likely to be far lower than the interest rates which are being charged on the credit cards to be consolidated. The fact that the term of the loan is negotiable and only one payment will subsequently be required to be made each money should significantly decrease the level of monthly outgoings.
It is important to shop around for the right loan and obtain as many quotes as possible. Different lenders will charge different rates on their loans, have different loan periods available and will have different terms and conditions which apply to their loans. A careful comparison should therefore be made when a number of quotes have been obtained to see which option provides the best long term deal.
It is then a case of applying for the loan and waiting to see whether it is accepted. Assuming that it is, the funds will then be issued and the process of consolidating the credit cards can begin.
If up to date statements are available for the credit cards, they can simply be consolidated by paying the full amount in the manner by which the monthly payment is normally sent. If an up to date statement is not available, a repayment figure should be requested from the relevant credit card provider, dated far enough in advance to allow time for the funds to be sent, received and processed.
When multiple credit cards have been consolidated in this way, it is important that the debt not be allowed to accumulate again in such a fashion. It is therefore advisable to keep one credit card for careful, day to day use and close the remaining accounts completely.