So some people also see this as a form of debt consolidation.
Here’s how credit card consolidation works: You first decide if you want to take out a new loan, open a new credit card or enroll in a debt management plan (more on that later).
Whichever option you choose, you will use it to pay off your multiple balances.
Then you’ll only have one monthly payment: the loan, the credit card or the debt management plan.
Not only does that simplify your debt payments, it can also help you save money.
Debt consolidation is where someone obtains a new loan to pay out a number of smaller loans, debts, or bills that they are currently making payments on.