A debt relief option for people with good to great credit is to consolidate debt using low-interest credit cards.

Many credit cards are good because they offer low to no interest balance transfer deals. However, sometimes this is only for a temporary period. This is why it is essential to read the entire proposal before signing anything.

7. Consolidate Your Debt Using Low-Interest Credit Cards

Balance transfer card

Pros:

• 0% introductory APR period.

Cons:

• Requires good to excellent credit to qualify.
• Usually carries a balance transfer fee.
• Higher APR kicks in after the introductory period.

Also called credit card refinancing, this option transfers credit card debt to a balance transfer credit card that charges no interest for a promotional period, often 12 to 18 months. You’ll need good to excellent credit (690 or higher on the FICO scale) to qualify for most balance transfer cards.

A good balance transfer card will not charge an annual fee, but many issuers charge a one-time balance transfer fee of 3% to 5% of the amount transferred. Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.

Aim to pay your balance down completely before the 0% intro APR period is over. Any remaining balance after that time will have a regular credit card interest rate.

This method of debt relief requires discipline, attention, and planning. However, consolidating your debt using low-interest credit cards is an outstanding way to obtain debt relief when done correctly.