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How to consolidate credit card debt
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If you’re dealing with mounting credit card debt, you may be looking for ways to pay it off quickly. After all, today’s high interest rate environment means your minimum payments are likely higher now than they have been in the past. But it’s important to understand that when you make the minimum payments, most of your payment goes toward interest charges rather than the principal balance.
The good news is that debt consolidation can make your debts more manageable. When you consolidate your credit card debts, you pay off multiple debts with a loan that typically has a lower interest rate. By doing so, you’ll save money on interest while simplifying the payoff process. But how do you consolidate credit card debt?
Find out how much money you could save with a debt relief service today.
How to consolidate credit card debt
There are multiple ways to consolidate credit card debt. Some of the most popular debt consolidation options include:
Use a debt relief service
Debt relief services typically negotiate lower interest rates or principal balances with your lenders. That means when you take advantage of these services, you could save money while expediting the repayment process.
Many of the services offered by debt relief companies don’t involve using a new loan to pay off high-interest debts. However, they can simplify the payoff process, as you typically send one monthly payment to your debt relief provider to address all of your credit card balances.
With debt management, your provider uses your monthly payment to pay your lenders on your behalf. With debt forgiveness, the money from your monthly payments is held in a special-purpose savings account until there’s enough saved up to pay out for credit card settlements. In either case, though, these options are for those who are struggling to make ends meet, so you won’t need a strong credit score and application to qualify.
And, it’s worth noting that many of the same debt relief services also offer debt consolidation loan programs. However, these and other types of debt consolidation loans typically come with higher credit and borrower requirements, so they may not be an option for everyone who enrolls in a debt relief service.
Use a debt relief service to help consolidate your debts now.
Take out a debt consolidation loan
Debt consolidation loans are a type of loan used to pay off credit card debt. By using a debt consolidation loan to pay off multiple credit card debts, you’re streamlining your payments into one loan with one monthly payment and a lower interest rate.
However, these loans can be harder to qualify for, so they’re usually best for those with good credit and a strong borrower profile. If your credit is damaged or your debt-to-income ratio is less than ideal, a debt consolidation loan may not come with a lower rate — or you may be declined altogether.
But if you can meet the higher lending requirements, a debt consolidation loan may be worth considering. According to the Federal Reserve, the average interest rate on a 24-month personal loan was 12.35% as of November 2023. So by using the right personal loan to consolidate your debt, the savings could be significant compared to the average 21.47% rate offered on credit cards.
Borrow from your home equity
If you own your home, your equity may be your key to paying off your credit card debt. The average homeowner currently has about $299,000 in home equity — about $193,000 of which is tappable. And, home equity loans usually come with competitive interest rates since they’re secured by your home, which can make them a smart choice for debt consolidation.
Right now, the average home equity loan rate is 8.59%. The average home equity line of credit (HELOC) rate is just slightly higher at 8.99%. These loans typically require a strong borrower profile for approval but can be a smart option if you want a lower interest rate and monthly payment.
If you’re approved for a home equity loan, you may be able to secure a loan term of up to 20 years (or up to 30 years with a HELOC). It’s important to note, though, that the longer the loan term is, the more interest you’ll pay over the life of the loan.
The bottom line
There’s more than one way to consolidate your high-interest credit card debt. If you’re struggling to make your minimum payments or don’t have the best borrowing qualifications, it could make sense to reach out to a debt relief company for help. If you have good credit and a strong borrower profile, you may want to consider using a debt consolidation loan or home equity loan to consolidate your credit card debt instead. No matter what, though, it’s typically best to act quickly. The longer the credit card interest accrues, the higher your balances will be.
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Former NFL player Steve Gleason gets candid about ALS journey: “This body may be a prison but my mind is free”
Steve Gleason helped lift the spirit of New Orleans with his iconic punt block during the Saints’ first home game after Hurricane Katrina in 2006 – two years before he retired from the NFL.
In 2011, the former New Orleans Saints safety was diagnosed with ALS. He believes that block, which he has called one of his proudest moments, saved his life.
“In 2006, when I blocked that punt on Monday night football, it was undoubtedly a phenomenon that was much more important than winning a football game,” Gleason said in an interview that aired Monday on “CBS Mornings.”
Creating “Team Gleason”
Shortly after his diagnosis, Gleason and his wife Michel made it their mission to help empower others with ALS and raise awareness for the disease, creating the Team Gleason Foundation. The foundation has provided over $40 million in technology, equipment and care services to people with ALS.
“So many people have told us that our foundation’s efforts and support have saved their lives. But if I didn’t block that punt, I’m just another has-been football player. It’s probably that I’d just fade away and die anonymously. I don’t see any of this happening,” Gleason said.
In a recent text conversation with his friend Brian Jeansonne, a former pastor from New Orleans who was diagnosed with ALS in 2020, Gleason was asked if he believes he’d have the same range and impact on ALS without that legendary 2006 block.
“My answer was, ‘If I don’t block the punt, I’m probably not alive,” Gleason said.
Jonathan Bachman / Getty Images
He added, “But here we are. I did block the punt…and this community, my family and friends and their love continue to uplift me throughout this crazy wonderful journey with ALS.”
Because of his heart and strength, Gleason was honored with the Arthur Ashe Award for Courage at the 2024 ESPYS.
“Steve Gleason has always been determined to write his own story and live to be 109. Through it all, he has never given in, never stopped fighting, No white flags. And never stopped finding ways to inspire, impact, and write his own story,” former Saints quarterback Drew Brees said at the 2024 ESPYs when introducing Gleason.
Living with ALS
CBS Mornings
When Gleason was diagnosed with ALS, he admits he had to tackle a wide range of emotions – going from frustrated to fearful, to angry. Gleason and Michel shared candid details about their journey with ALS in a new memoir, “A Life Impossible: Living with ALS: Finding Peace and Wisdom Within a Fragile Existence,” co-written with Jeff Duncan.
“The readers will see that 13 years of living with this gnarly disease and I’m over a decade past my expiration date, so I have the wilderness of fear tattooed all over me,” Gleason said.
Through the process of losing muscle control, Gleason said he held on to the one thing he has control over: his mindset.
“This body may be a prison but my mind is free,” Gleason said.
Michel admits she’s still tackling feelings of anger and frustration.
“I have not transcended it all like Steve has. But also [I’m] able to move and talk and feel. I’m proud of him for where he is because I really can’t imagine…having to do what he does every day,” she said.
Gleason uses a special computer equipped with eye-tracking software to communicate daily. But the technology isn’t always perfect.
“His technology doesn’t always work. His eyes get tired and some days I just want to be like I just wish today we could have like a regular conversation to figure out the next week,” Michel said.
Sometimes, Michel said, it’s hard for Gleason to communicate with his 5-year-old daughter Gray and 12-year-old son Rivers.
“It’s painful to watch, because I know how much he wants to be communicating with them,” she said.
“We all have a timeline”
Gleason believes “we all have a timeline,” and he finds that concept “absolutely beautiful.”
His advice to others: live like today is the last day you’ll be able to move, talk and breathe on your own.
If you start to shift your mindset, Gleason said, your perspective will change.
“Will you be more appreciative and less concerned about achievement or material success knowing this is your last day of moving?” he asked. “When you hug your child or run your hand through their hair, knowing this is the last time, how much will you appreciate the preciousness of that moment?”
“Mic drop,” agreed Michel before giving him a “forehead to forehead” hug.
CBS Mornings
Watch David Begnaud’s full interview with Steve Gleason here.
David Begnaud loves uncovering the heart of every story and will continue to do so, highlighting everyday heroes and proving that there is good news in the news with his exclusive “CBS Mornings” series “Beg-Knows America.” Every Monday, get ready for moments that will make you smile or even shed a tear. Do you have a story about an ordinary person doing something extraordinary for someone else? Email David and his team at DearDavid@cbsnews.com
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