What is the safest way to consolidate debt?
Sophia Koch
Updated on January 31, 2026
The smartest strategy to pay off credit card debt is through credit card consolidation. When you consolidate credit card debt, you combine your existing credit card debt into a single loan with a lower interest rate. With a lower interest rate, you can save money each month and pay off debt faster.
Can you consolidate debt into a first time mortgage?
Can I consolidate debt into a first time home loan? Yes! First home buyers can consolidate their existing debt into their home loan using a guarantor. With a guarantor, you can borrow 100% of the property value, an extra 5% for the associated purchase costs and up to another 5% to cover other debts.
What’s the best way to consolidate my debt?
Another option is to get a debt consolidation loan that offers a lower APR than you’re paying on your current debt. If your credit score is in good shape, this type of personal loan can help you reduce your total debt by hundreds or even thousands of dollars by decreasing the amount you owe in interest.
What happens when you consolidate credit card debt?
When you consolidate debt, you combine multiple debts, such as credit cards, medical bills and other unsecured loans, into one monthly payment with a lower interest rate. It can be an effective financial strategy if you have debt that carries high interest and you are ready to stick to a plan to pay off that debt.
How to consolidate debt with a balance transfer?
How to consolidate debt with a balance transfer. This option only works if you have a limited about of debt and a good credit score. You apply for a balance transfer credit card that offers a 0% APR promotion. You get approved based on your credit; a higher score means a longer 0% APR promo period.
What are the different types of debt consolidation?
Types of Debt Consolidation. There are several avenues open to consolidate debt, including a debt management plan; home equity loan; personal loan; credit card balance transfer; borrowing from a savings/retirement account and debt settlement.
