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Consolidate Credit Card Debt Before the Holidays

Consolidate Credit Card Debt Before the Holidays

With the holiday season right around the corner, now’s the perfect time to get a handle on any outstanding credit card debt. The last thing you want to do is add holiday expenses onto existing balances – especially if that debt is already difficult to manage. One of the easiest ways to organize and consolidate credit card debt is through a balance transfer. 

How Does a Balance Transfer Work? 

A balance transfer is a process of moving debt from one or more credit cards to another credit card, typically with a lower interest rate. Instead of juggling multiple credit cards, each with its own rates and due dates, you’ll only have one card to manage. 

To illustrate how a balance transfer works, review the following example.


Suppose you have three different credit cards with balances totaling $5,000. Each credit card has a different interest rate.

Credit Card #1

Credit Card #2

Credit Card #3







 This service allows you to move balances from your existing credit cards to a new card, usually with a more attractive interest rate. With a lower interest rate, you’ll save money each month that can then be put towards the principal portion of your outstanding debt – helping you pay off the balance faster.

New Credit Card




Benefits of Consolidating Credit Card Debt Before the Holidays

While one of the most enjoyable times of the year, the holidays can also be one of the most expensive times. Gifts, travel, and family gatherings all dig into your monthly budget. Preparing yourself financially for these expenses will help you alleviate stress.

  • Simplified payments. Instead of juggling multiple credit cards, a balance transfer allows you to focus on making only one monthly payment. 
  • Reduced interest. Consolidating high-interest credit cards into one lower-rate card will help you significantly lower the amount of interest you were paying. In the example above, we consolidated the interest rates of 18%, 23%, and 15% into a lower-rate card that only charged 9% interest. NOTE: Most credit unions cannot charge interest rates above 18% - unlike bank cards that can reach up to 30% APR!
  • Faster payoff. By reducing your interest rate with a balance transfer, you’ll pay less interest each month. Use those savings to pay more toward your outstanding balance to pay off the entire balance quicker.  
  • Eliminate stress. The holidays can be very stressful in general. Reducing credit card debt and the hassle of managing multiple balances before the rush of holiday festivities will reduce your stress. 

Finding the Right Card

If you’re using a credit card, your goal should be to pay off the balance quickly and incur as little interest as possible. When looking for a credit card to transfer your outstanding balances, find a card with the lowest interest rate possible. Rewards are a bonus, but only after you identify the lowest-rate card. 

CAMPUS Can Help!

At CAMPUS, we offer no-fee balance transfers on all credit cards. Check out our credit card comparison chart to determine which card is best for you. If you are looking to manage your debt and need a little more structure in the repayment terms, a debt consolidation loan may be the best solution for you. 

Please stop by any of our convenient service center locations or call 800-367-6440 to discover which strategy will work best for your unique financial situation. As your credit union, our goal is to help you make the right decisions to ensure your financial success.

More resources:

How a Credit Card Balance Transfer Works

How Debt Consolidation Loans Work and the Benefits

Use our free Credit Card Debt Payoff Calculator

By CAMPUS USA at 28 Sep 2021, 20:48 PM

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