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Debt Consolidation

Best Way to Pay Off Multiple Credit Cards and Save Money

July 29, 2025 | 7 min read
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Credit cards can make it a breeze to cover everyday expenses. As long as you use them responsibly, you may even earn rewards in the form of cash back or travel points. While credit cards have their pros, it can be difficult to pay them back, especially if you have multiple cards with varying balances and due dates.

Fortunately, there are a number of strategies that can make the process less overwhelming and potentially save you money, including debt consolidation. Depending on your situation, consolidating might be just what you need to get rid of your credit card debt and set yourself up for success.

What are the challenges of managing multiple credit cards?

While multiple credit cards may open the doors to some benefits, such as an increased credit limit and more rewards opportunities, managing them is no easy feat. After all, you have to keep tabs on several due dates, interest rates, and balances.

If you miss a payment on one (or more) of your credit cards, you may be on the hook for late fees, interest rate hikes, and even a dip in your credit score. Multiple credit cards can also make it easier to overspend and quickly cause you to spiral into a cycle of debt.

“Managing multiple credit cards is like juggling knives—one wrong move and things can get messy, but with the right strategy, you can handle it all,” says Harold G. Wenger Jr., Partner & Wealth Manager at Kingsview Partners.

Should you consider credit card consolidation?

Depending on your situation, consolidating credit cards can be a smart move. Through this strategy, you combine multiple credit card balances into one manageable payment. This often leads to interest savings and makes it easier to pay off all your credit cards faster.

“Consolidation is especially helpful if you feel overwhelmed by the number of credit cards you’re juggling. It not only makes monthly payments simpler, but it can also reduce stress,” explains Wenger.

According to Wenger, credit card consolidation is most beneficial if you’re committed to avoiding new credit card debt while you pay down your consolidated balance. It won’t help you out if you continue to rack up your balances.

If you answer “yes” to some or all of these questions, consolidating your credit card debt is worth exploring:

  • Are you overwhelmed by multiple credit card debts?
  • Would you like to potentially save money on interest?
  • Do you wish you could lower your monthly payments?
  • Do you have a plan to help you stay out of credit card debt in the future?

Why is a personal loan the best option for debt consolidation?

While there are a few different ways you can consolidate credit card debt, a personal loan is usually your best bet. “A personal loan is a solid option for consolidating credit card debt because it usually comes with a lower interest rate than most credit cards, especially if you have good credit,” says Wenger.

Debt consolidation through a loan is also a strong choice if you’re committed to addressing any spending issues you might have. If you tend to overspend, your credit card debt may return, and you’ll be back at square one.

Here’s a quick look at the advantages of this strategy:

  • One monthly bill: You’ll only have to make one monthly credit card debt payment rather than multiple. This can simplify the payoff process and eliminate the need to keep tabs on several due dates and balances.
  • Potential interest savings: If you have high interest rates on your credit cards, consolidating them to a lower interest rate can lead to significant interest savings over time. Depending on your situation, you could save hundreds or thousands of dollars.
  • Lower monthly payments: With debt consolidation through a personal loan, you can reduce your monthly payments with a lower interest rate and an extended repayment term if you prefer. This may open up additional funds for other financial goals, such as saving for retirement, or simply provide more breathing room in your monthly budget.
  • Predetermined payoff date: If you’re tired of wondering whether you’re making progress on your debt, consolidating with a personal loan is the ultimate solution. It will give you a clear end in sight and hopefully motivate you to keep going.
  • Faster payoff: As long as you consolidate your credit card debt at a lower interest rate, you may use the money you save on interest to get out debt faster. This can shift your focus to different financial priorities.

How can BHG Financial assist with credit card debt consolidation?

Specifically designed for successful entrepreneurs, business owners, and professionals, BHG Financial offers a debt consolidation personal loan with competitive fixed rates. You don’t have to pledge any collateral and may access up to $250,0001, making it a breeze to cover large balances across multiple credit card accounts.

If you’re interested in consolidating your credit card debt, you can apply for a BHG debt consolidation personal loan quickly and start the payoff process right away as loan funds are usually distributed in as few as five days.2

With a BHG debt consolidation personal loan, you’ll only have to worry about one, manageable monthly payment, save on interest, avoid late fees, and free up your cash flow so you can focus on other financial obligations, like renovating your home or investing for retirement.

BHG works with individuals with high DTI and high income

The BHG debt consolidation personal loan is ideal if you’re a successful professional with a high income and high debt-to-income (DTI) ratio. Our loan can help you streamline your credit card payoff process and improve your overall finances.

If you have questions or are looking for some guidance, rest assured a U.S.-based loan specialist is here for you. You can work with them to customize a debt consolidation personal loan for your unique situation and goals. To get the process started, check your rate today, with no impact to your credit.3

Best way to pay off multiple credit cards FAQ

Will consolidating my credit cards affect my credit score?

Consolidating credit card debt can have both positive and negative impacts to your credit score. In the short term, taking out a loan to consolidate debt may result in a small dip in your score, due to the hard inquiry from the loan application.

However, if you're consistent with a timely repayment plan and avoid racking up new credit card debt, it will likely improve your credit score in the long run. This is because consolidating reduces your credit utilization ratio (the amount of credit you’re using relative to your total available credit), which is a key factor in determining your credit score.

 

How long does it typically take to pay off multiple credit cards?

The amount of total credit card debt, interest rates, and repayment strategy you use all play a role in how long it will take to pay off multiple credit cards. “For example, making just the minimum payments, it can take decades to pay off due to interest charges. However, using the debt snowball or avalanche method will likely help you pay it all off within 3 to 5 years or even less if you're smart with your payment strategies,” explains Wenger.

 

What is the difference between secured and unsecured debt consolidation loans?

Secured debt consolidation loans are tied to collateral, such as your car, house, or savings account. Unsecured debt consolidation loans, on the other hand, do not require collateral. They’re usually a better option if you have strong credit and don’t want to risk losing a valuable asset you own. You can still qualify for low rates and favorable terms, especially if you shop around and compare your options.

 

How does a debt management plan work?

A debt management plan or DMP is a structured program offered by some credit counseling agencies. It involves negotiations with creditors to lower your interest rates and decrease your monthly payments. Typically, you make one monthly payment to a credit counseling agency and they distribute the funds to your creditors.

If you’re struggling to make your minimum payments or need help managing your debt, you may benefit from a DMP. The caveat, however, is that you’ll need to close your credit accounts and stick to a tight budget to avoid accumulating more credit card debt.

Note that if you go this route, your credit counseling agency will likely charge you an enrollment fee plus a monthly fee for each credit card account. As you go through the program, it’s important to make timely payments so you could potentially become debt free from credit cards within 3 to 5 years.

 

What are the risks of using home equity to pay off credit card debt?

If you’re a homeowner and take out a home equity loan or home equity line of credit (HELOC) to repay your credit card debt, you’ll put your home on the line. Since these loans are secured to your property, the lender may foreclose if you default on your loan. In general, if you have strong credit and can qualify for an unsecured debt consolidation loan with a low rate, you should take advantage of it instead of a home equity product.

Not all solutions, loan amounts, rates or terms are available in all states.

1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

2  This is not a guaranteed offer of credit and is subject to credit approval.

3 There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit. 

Consumer loans funded by Pinnacle Bank, a Tennessee bank or County Bank. Equal Housing Lenders. 

No application fees, commitment, or impact on personal credit to estimate your payment. 

For California Residents: BHG Financial loans made or arranged pursuant to California Financing Law license - Number 603G493.