How to Consolidate a Low Amount of Debt

When consumers have a low amount of debt spread over several accounts, managing the debt can actually be difficult despite the low balances. Consumers have to keep of the various accounts, balances, annual percentage rates, due dates, minimum payments and more. By consolidating this small amount of debt, consumers will then only have one account to keep track of. Often times, the consolidation can also be done at a lower overall interest rate, saving the consumer money in the long run.

Instructions

1

Launch your internet browser and go to the Bankrate website. Bankrate provides consumers the ability to compare rates on a variety of financial products.

2

Select the Credit Cards tab on the top of the Bankrate site. In the Select a credit card below click on Card Type and then click the Go button.

3

Choose Balance Transfer Cards and then click the Next button. Since you are only consolidating a low amount of debt, transferring your other debts into one credit card is the easiest way to do a small debt consolidation. You can usually obtain great rates and no security is required.

4

Read through all of the credit card offers that Bankrate lists. You will want to compare the initial balance transfer percentage rate, how long the introductory rate is in effect, what kind of rate you can expect after the introductory period expires, whether the card has an annual fee and what type of credit rating is needed in order to obtain the card. Please note that Bankrate may return several different pages of offers so scroll to the bottom and click on the Next button to browse through all of the offers.

5

Click on the Apply Now button underneath the credit card offer that best suits your needs. Follow the application process and be sure to look for the section asking if you would like to transfer balances at the time of your application.

6

Fill out the balance transfer sections, at minimum you will need the account number and balance of the accounts you wish to consolidate. Some credit card companies will also ask that you fill out the payment address, although not all will.

7

Verify all of the information that you have input in your application as well as the balance transfer data. Once you have confirmed that your application is completed correctly, click on the submit button. Some cards may provide you with an instant response while others will require a follow-up via mail.

8

Continue to pay your individual debts until you receive confirmation that they have been paid in full with the balance transfer request.