How to consolidate credit card debt

If you’ve got a lot of credit card debt to pay off, consolidating it into one place with one monthly repayment can make your life a lot easier.

Posted Jan 17, 2022

Fact checked

Credit card debt can quickly become expensive, and if you’ve got debt on several different credit cards, managing each one can get complicated. That’s why it can make good financial sense to move all of your debt over to the one place.

How does credit card debt consolidation work?

Credit card debt consolidation is the process of combining all of your credit card debts into one. One way to do this is by taking out a personal or consolidation loan and paying off your card providers with the money you’ve borrowed. You then repay your loan provider in monthly instalments.

Alternatively, you can consolidate card debt by using a balance transfer credit card to merge your debts onto the one card. If you choose the right credit card, a balance transfer can often be cheaper than a personal loan.

Why should you consolidate your debt?

Consolidating your credit card debt has many benefits. For a start, merging all your debts into one means you’ll only have one monthly repayment to make rather than several. This can make it much easier to keep track of what you owe and when.

Another benefit is that you may be able to take advantage of a lower interest rate which has the potential to save you hundreds of pounds. If the loan or credit card you choose has a lower interest rate than what you’ve been paying, you’ll be much better off and be able to clear your debt faster.

Using a balance transfer to consolidate debt

One of the most popular ways to consolidate credit card debt is to carry out a balance transfer. This is the process of moving debt from existing credit cards to a brand new one – ideally one that offers a lower interest rate.

Some balance transfer credit cards charge no interest at all for a number of months – up to three years in the best cases. This should give you plenty of breathing space to start tackling your debt head on without worrying about interest building up, and this should allow you to clear your debt more quickly.

Be aware that many balance transfer credit cards will charge a transfer fee of around 1% to 3%. But given how much interest you could save, this fee could be worth paying.

Also note that to fully benefit from a 0% balance transfer card, it is important that you clear your balance before the 0% deal ends and interest kicks in.

If you’re concerned about being able to clear your debt within that time, you could either transfer your debt again to another balance transfer card. Or you could take out a low APR balance transfer card that charges a low rate of interest for the life of the debt. This means that while you will still pay interest on your debt, the rate is likely to be lower compared to the amount you were paying before and there is no deadline by which you need to have paid off your debt in full. Some low interest balance transfer cards don’t charge transfer fees either.

Table: sorted by representative APR, promoted deals first

Name	Balance transfers	Balance transfer fee	Purchases	Annual/monthly fees	Representative APR	Incentive	Link
M&S Bank Credit Card Rewards Offer Mastercard	0% for 12 months reverting to 19.9%	2.9% (min. £5)	0% for 12 months reverting to 19.9%	£0	19.9% APR (variable)	Double points on spend in M&S for first year (2 points per £1). Then 1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card. Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
Santander Everyday No Balance Transfer Fee Credit Card	0% for 21 months reverting to 21.9%	0% for 21 months reverting to 3% (min. £5)	0% for 3 months reverting to 21.9%	£0	21.9% APR (variable)	Earn up to 15% cashback with your selected Retailer Offers at selected major retailers. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
Santander Everyday Long Term Balance Transfer Credit Card	0% for 33 months reverting to 21.9%	2.65% (min. £5) for 33 months reverting to 3% (min. £5)	0% for 3 months reverting to 21.9%	£0	21.9% APR (variable)	Earn up to 15% cashback with your selected Retailer Offers at selected major retailers. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
Royal Bank of Scotland Balance Transfer Credit Card (existing customers only)	0% for 22 months reverting to 21.9%	0%	0% for 3 months reverting to 21.9%	£0	21.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
M&S Bank Credit Card Transfer Plus Offer Mastercard	0% for 32 months reverting to 21.9%	1.99% (min. £5) for 3 months reverting to 2.75% (min. £5)	0% for 3 months reverting to 21.9%	£0	21.9% APR (variable)	1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
HSBC No Fee Balance Transfer Credit Card Visa	0% for 20 months reverting to 21.9%	0%	21.9%	£0	21.9% APR (variable)	Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
The NatWest Balance Transfer Credit Card (existing customers only)	0% for 22 months reverting to 21.9%	0%	0% for 3 months reverting to 21.9% p.a. (variable)	£0	21.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable), your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
HSBC Balance Transfer Credit Card	0% for 33 months reverting to 21.9%	2.7% (min. £5) for 2 months reverting to 2% (min. £5)	0% for 3 months reverting to 21.9%	£0	21.9% APR (variable)	Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
M&S Bank Shopping Plus Credit Card	0% for 24 months reverting to 21.9%	2.9% (min. £5)	0% for 24 months reverting to 21.9%	£0	21.9% APR (variable)	Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
HSBC Balance Transfer Low Fee Credit Card	0% for 28 months reverting to 21.9%	1% (min. £5)	0% for 3 months reverting to 21.9%	£0	21.9% APR (variable)	Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away. Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Go to site Read review	Compare	loading Fetching your data...
Royal Bank of Scotland Purchase & Balance Transfer Credit Card (existing customers only)	0% for 23 months reverting to 21.9%	2.49%	0% for 23 months reverting to 21.9%	£0	21.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
NatWest Purchase & Balance Transfer Credit Card (existing customers only)	0% for 23 months reverting to 21.9%	2.49%	0% for 23 months reverting to 21.9%	£0	21.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
HSBC Purchase Plus Credit Card Visa	0% for 23 months reverting to 22.9%	2.9% (min. £5) for transfers in first 60 days	0% for 23 months reverting to 22.9%	£0	22.9% APR (variable)	Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away. Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
Santander All in One Credit Card	0% for 26 months reverting to 18.9%	0% for 26 months reverting to 3% (min. £5)	0% for 23 months reverting to 18.9%	£3 per month	24.7% APR (variable)	0.5% after £1 of monthly spend. Cashback paid Monthly into Card Account. Maximum spend for cashback purposes is limited to credit limit. Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a. with a fee of £3 per month, your representative rate is 24.7% APR (variable).	Check eligibility Read review	Compare	loading Fetching your data...
HSBC Premier Credit Card	0% for 18 months reverting to 18.9%	1.4% (min. £5)	0% for 9 months reverting to 18.9%	£0	18.9% APR (variable)	A selection of rewards from a range of partners. Earn 1 point for every £1 spent within the UK and earn 2 points for every £1 spent outside the UK. Points can be redeemed for shopping vouchers and frequent flyer miles. Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a., your representative rate is 18.9% APR (variable).	Read review	Compare	loading Fetching your data...
first direct Credit Card	0% for 27 months reverting to 18.9%	2.29% (min. £5) for 3 months reverting to 2.9% (min. £5)	18.9%	£0	18.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a., your representative rate is 18.9% APR (variable).	Read review	Compare	loading Fetching your data...
Nationwide Member Credit Card Balance Transfer Offer	0% for 18 months reverting to 19.9%	1.5% (min. £5) for 3 months reverting to 2.4% (min. £5)	0% for 3 months reverting to 19.9%	£0	19.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).	Read review	Compare	loading Fetching your data...
Sainsbury's Bank 30 Month Balance Transfer Credit Card Mastercard	0% for 30 months reverting to 19.95%	1.5% (min. £3) for 3 months reverting to 3% (min. £3)	0% for 3 months reverting to 19.95%	£0	19.9% APR (variable)	Earn 3 Nectar points per £1 spent in Sainsbury's and Argos. Earn 1 Nectar point for every £5 spent elsewhere. Earn 500 bonus points each time you spend £35 or more on Sainsbury's shopping with your credit card, up to ten times in your first 2 months, offer available for new customers. Representative example: When you spend £1,200 at a purchase rate of 19.95% (variable) p.a., your representative rate is 19.9% APR (variable).	Read review	Compare	loading Fetching your data...
Nationwide Member Credit Card All Rounder Offer	0% for 15 months reverting to 19.9%	1.5% (min. £5) for 3 months reverting to 2.4% (min. £5)	0% for 15 months reverting to 19.9%	£0	19.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).	Read review	Compare	loading Fetching your data...
The Co-operative Bank Balance Transfer Credit Card Visa	0% for 24 months reverting to 20.6%	0%	0% for 4 months reverting to 20.6%	£0	20.6% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 20.6% (variable) p.a., your representative rate is 20.6% APR (variable).	Read review	Compare	loading Fetching your data...

Compare up to 4 providers

What are the pros and cons of balance transfers?

Pros

All your debt will be in the one place
There’s only one monthly payment to make
You could save hundreds in interest
You could clear your debts faster
Your credit score could improve as a result

Cons

You may have to pay a balance transfer fee
The best balance transfer offers are reserved for those with a good credit rating
If your card has a 0% offer, the interest rate will jump once this has expired
You could hurt your credit score if you don’t manage your debt carefully

Alternatives to credit card debt consolidation

If you’re struggling to repay your debts and you don’t want to or can’t use a balance transfer or a personal loan to consolidate it, there are other options open to you, but these will need to be considered with care.

A debt management plan (DMP) is an agreement between you and your creditors to pay off your debts. You can arrange a plan with your creditors yourself, through a licensed debt management company for a fee, or through a debt charity like StepChange for free. Your DMP is designed to help you manage your debts and pay them off at a more affordable rate by making reduced monthly payments.
A debt relief order (DRO) is a way to have your debts written off, provided you have debts of less than £30,000, assets of less than £2,000, you do not have much spare income and you do not own your home. With a DRO you won’t pay anything towards your debts for 12 months and after this time they will be written off.
An individual voluntary arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. IVAs can be flexible but they can also be expensive.

If you’re considering any of the above options, always seek free debt advice first through organisations such as StepChange, National Debtline, Citizens Advice and PayPlan.
If you live in England and Wales, you can also get temporary protection from your creditors while you get debt advice and make a plan. This scheme is called Breathing Space and gives you protection for up to 60 days (longer if you’re getting mental health crisis treatment).

You’ll still need to make your debt repayments but it means that enforcement action cannot be taken against you, your creditors cannot contact you about debts included in your Breathing Space, and your creditors cannot add interest or charges to your debt.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

Thank you for your feedback!

Rachel Wait

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers and is a keen baker in her spare time.

Santander balance transfer

More guides on Finder

Santander balance transfer
Find out to transfer a balance using a Santander credit card, and compare 0% balance transfer offers.See how to transg
Can I transfer money from a credit card to a bank account?
Weigh up your options when you want to transfer funds from a credit card to a bank account.
Can I transfer a balance from someone else’s credit card?
Learn how you can transfer debt from your partner, which card issuers allow this and how to minimise the cost.
How much can I transfer with a balance transfer card?
Understand how balance transfer limits work so you can find the right credit card to consolidate your debt and clear it faster.
How to do a balance transfer in 9 steps
Make sure your application for a 0% balance transfer credit card is accepted. Get our list of tips for increasing your chance of approval.
How to manage a new credit card after a balance transfer
You’ve conducted a balance transfer – now what? Follow these easy steps to manage your debt repayment and get the most from your balance transfer offer.
How long does a balance transfer take?
Applying for a balance transfer? Discover how long it can take and learn how to speed up the process.
Compare no-fee balance transfer credit cards
Discover the best credit cards with no balance transfer fees. They are a useful tool if you want to take a break from paying interest on credit card debt.
Is it possible to do a second balance transfer?
Weigh the pros and cons of a second balance transfer to get your credit card debt under control.

Ask an Expert

Click here to cancel reply.

Display Name

Your Email (will not be published)

Your Question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

How to consolidate credit card debt

If you’ve got a lot of credit card debt to pay off, consolidating it into one place with one monthly repayment can make your life a lot easier.

In this guide

Guides

We compare the following card issuers