You can combine all of your debts into one payment by applying for a debt consolidation loan or a balance transfer credit card from a bank or credit union, then using it to pay off your debts. If your new loan or credit card provides enough funding, you will find yourself with a single balance requiring just one payment per month. Debts consolidated this way are easier to manage, and you could also save money on interest. You can read more about how to combine debts into one payment below.
You may be able to apply for a loan or balance transfer credit card online, in person or over the phone. You will need to provide some personal and financial information when you apply, such as your name, address, employment status and income. You’ll need to provide details about your existing debts, too.
Wait for a decision.
With a debt consolidation loan, you may get a decision the same day you apply or within a few business days. You’ll then get your funds within a few business days after approval. Some lenders will send the funds directly to your creditors. All you need to do is tell them where the funds need to go.
With a balance transfer credit card, you may get a decision quickly or within a few weeks. Once you’re approved, you’ll get the card within 7 - 10 business days. Bear in mind that you might not get approved for a credit limit high enough to fully combine all of your debts into one payment.
Repay the balance.
Once you get the funds from a loan, you’ll need to repay the lender. This may take months to years to complete.
If you get a balance transfer credit card, you’ll need to repay the issuer after they pay off your existing debt. It’s best to do this before any low-interest introductory APR period ends.
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