How to Transfer Credit Card Debt

By Giselle Diamond

  • Overview

    Everyone makes financial and credit mistakes, choosing a bad credit card or one that goes bad. Sometimes it's the company, the interest rate, the lack of rewards or just our own foolishness that brought us to a financial point of no return with that credit card, or maybe multiple cards. Either way, we can find deals that treat us better and are willing to take on the debt we already have to help us lower our payments and get out of our bad situation. Transferring credit card debt is quick and easy.
    • Step 1

      Round up every credit card you have. In a noteboo,k make a list of each card, including company name, interest rate, credit card number and total balance due as of today's date. Reorganize your credit card debt list from smallest to largest. This helps put things in perspective. You may have wanted to take all your credit card debt and transfer it to a loan or another card, but after making the list you may change your mind.
    • Step 2

      Look at the debt list again at the top and ask yourself if there is any credit card debt you can pay on your own. Pay what you can or want to. Not everyone transfers her credit card debt because she is in over her heads. For those who just don't like the company or prefer a lower interest rate or higher line of credit, the previous step and this step still may help you. No matter what reason you want to transfer money, paying off what you owe will really save you in the end.

    • Step 3

      While using a credit card is technically borrowing money, the real question here is whether to take a loan to achieve lower interest debt. Taking a loan can be a good thing if the interest rate is lower than what your maximum interest rate on any one credit card is. Some people take home equity loans--not a good idea! Not for paying off credit card debt. It would be better to transfer the debt onto another credit card. This way if you lose your income you won't lose your home. If a loan isn't for you, then make a second list in that notebook of various credit card companies you feel have better offers than the one(s) you currently use.
    • Step 4

      Choose which loan or credit card offers you want. Call them up and make sure they take credit card debt transfers--not every company does. Ask what loan amount or line of credit you can receive. Compare current interest rates, being mindful that credit card rates can change quickly, while most loan rates are fixed. Sometimes your credit card debt may outweigh what the new companies are willing to give you. Once you've been accepted for a loan or line of credit with a company you wish to transfer your debt to, cut up those credit cards!! Don't worry; you have all their information in that notebook.
    • Step 5

      Transfer your credit card debt. This is extremely simple. All that happens is the new company asks for the old compan'sy information and the total amounts due. If you're getting a loan, the company will give you a check for the total amount due on each credit card. Viola! Your balance has been transferred to a loan and you now have the checks to pay them off and never deal with them again. If you get a line of credit the same rule applies in terms of giving them the old credit card information. The difference with transferring to a new credit card is that they won't cut you a check. They take what you owe and put that as the new balance on your new credit card.
    • Step 6

      Make your payments on time and in as large amounts as you can afford. No one likes to see a large amount of credit card debt. Let's face it: transferring takes time and energy you'd rather spend doing other things. Keep track of your spending and stop being tempted by other company's offers. Chances are those offers don't last very long.
    • Skill: Moderately Easy
    • Tip: Keeping credit card balances extremely low can make it a lot easier to transfer the debt to a new card. You're always more likely to get approved for a smaller than a larger line of credit on a new card or loan.
    • Warning:
    • Guard the notebook with your life!! If someone gets hold of that information they could use it to purchase items. It can take several days to a few weeks for money to transfer from credit cards to a new card or loan. So don't lose that notebook!!

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