The best debt consolidation solution is to get a zero percent balance transfer credit card if you owes money on high interest credit card and the amount is lower than $3,000. there are other options like getting a debt consolidation loan but it will usually require a security collateral. The security collateral can be an asset like motorcycles, recreational vehicles or mobile home. As a college student, you probably don’t yet own any asset to put up as security for the debt consolidation loan.

Besides, there are debt consolidation companies that claim to be able to help you lower your debt by reducing the monthly payment.
They receive your payment every month and distribute to the creditors in equal portion. The problem is that many of the debt consolidation companies in the market are scams and they will run away with your money.

A balance transfer credit card is not only used for transferring balances on other credit cards. Many people have also transfer various types of installment loans on the balance transfer credit card including student loan. The zero percent credit cards will waive the interest fees for a certain period of time for example 12 – 21 months.

If you can fully repay the credit card debt within the intro period, you will only be paying back the principal amount which can prevent you from wasting thousands of dollars on making payment for the interest fees. However, you must take into consideration that many balance transfer credit cards also charge a balance transfer fee. The balance transfer fee is 3 – 5% depending on which balance transfer card you sign up. For example, if you transfer 5,000 and the balance transfer fee is 3%, the balance transfer fee will be $150.

The fee is charged separately on each transfer that you make. You should do some calculations to make sure that the balance transfer fee does not exceed the interest fees you normally pay on your high interest credit card. Otherwise, it won’t be worthwhile to signup for the balance transfer credit card. Some credit cards will waive the balance transfer fees if you transfer the balance within a specific period of time, for example 60 – 90 days.

It is important that you remember the expiry date of the intro period. Most of the time, the lender won’t send you any notification when the intro period expires so you are the one responsible of remembering the date. On top of that, you should not use the card to spend money on new purchases as it will add to your burden of repaying the credit card debt. You must be discipline and take in control of your bad spending habit so that you can quickly pay off the credit card debt.