When to cut off credit cards to consolidate debt

There are many significant advantages to consolidate high-interest credit card debts, which is why this is so popular. You need to make sure that you find the right loan for your needs, which is easy to do online.

For those who have a lot of credit card debt, payments can be crippling every month because credit card interest rates tend to be very high. If you have lots of credit cards then you probably are only making small or minimal payments.

You will probably pay a large amount of interest, and you will be stuck paying the debt for a long time. That is where debt consolidation could help you according to Nat Berman.

On the Other Side of the Coin

In consolidating your credit card debt, the debt has not been forgiven or even reduced. You still owe the same amount of money, and if you don’t increase your payments and reduce your expenditure, the problem never goes away.

This could mean more payments. Some credit card consolidation firms charge upfront charges for their services. Do not consider those companies and seek only help from ones that do not assess fees.

It might lead you to more debts. For some consumers, a loan for credit card consolidation will make them go deeper into debt. Make sure you ask the lender questions to understand the plan and how it will work for you.

Time can also be a problem. You should be ready to spend between two and five years in a debt consolidation program before you can eliminate the debt. For those reasons, you might want to close some of your credit card accounts.

Thinking out Why

Does debt consolidation close credit cards? Yes, but that depends on your circumstances. If you’ve got a good debt and low credit, your current accounts may not be closed. Without this restriction, you can use a balance transfer or even a debt consolidation loan. With a credit line available on a card without a balance, your credit score can always be helpful in an emergency or if the terms improve in the future.

If you pay a yearly fee for a card you don’t use, then it makes sense to cancel those cards because they cost you money unnecessarily.

If you really want your credit card canceled, but before you pick up your scissors, however, you must know this: the right way to cancel a credit card is not just to snip it in two. You must take specific steps to close your credit card account with the least damage to your credit score.

What you should consider

You must consider the possible effect on your credit score before you close a credit card account. Just because you cancel a credit card does not mean that your credit report immediately receives its payment information.

For open accounts, positive credit data may be kept indefinitely in the credit report. The terminated accounts with zero balances and no bad information are related to them normally and will remain on the history of your credit for ten years from the time they are reported.

Depending on the total credit available, closing a credit card account with a high credit limit could damage your credit score, especially if you have a high balance on other cards or loans.

To ensure that closing your credit card does not have an impact on your score, pay balances on all other cards. If you have zero balance, your credit utilization rate is zero, and the loss of your balance will not affect you. Experts say, however, that this step is unnecessary for most people.

Ways to cancel your credit card safely

According to financial author Fred O. Williams, there are several ways to cut off your credit cards without hurting your credit score.

Know who to get in touch with. To start the account closure process, find the customer service number and mailing address.

Remember to earn rewards. In the case of reward cards, it is common to lose some rewards when a card is closed, which can be inevitable. But it should be possible to minimize the loss with planning.

Check the balance of rewards and the redemption procedure on the issuer’s website. If you can not apply them to travel or goods, you can take accumulated miles or points as a statement credit.

Pay your balance completely. Pay your credit card in full or transfer the balance if you find a balance card with better terms. You can’t close a card until the balance is paid. If you want no more charges on your card until the balance has been paid, you can contact the issuer and ask if it is possible, the cards must be frozen until the balance has been cleared and the card has been closed.

Provide the news. Once you reach the customer service representative of the bank, confirm that the balance is zero on your credit card. Don’t assume the balance should be zero, as you paid the total on your last bill. Interest between the time the bill was sent and your payment was made may have continued to accumulate.

Be patient. Sit tight, then. Canceling the card may take a month or more. After that, look at a copy of your credit report to ensure that your account is “closed.”

Just take notes. When you cancel your credit card, you may want to keep careful notes about who you spoke, what you said and when. If anything goes wrong, you’re going to have all the facts recorded.

Dispose of your card properly after confirmation of cancellation. After you have documented the cancelation process, you can finally discard your credit card and make sure your credit report is in line with the closed account. There are many ways to destroy your plastic, or it might be metal, but you have to choose a disposal method that makes your information completely unrecoverable from identity thieves.


Cutting off credit cards is prevalent to the people who decide that their financial burden could be lessened if they close some of their credit cards. It is up to your decision if you want to cut off some of your credit cards when consolidating, whatever that makes you feel secure financially.

One thought on “When to cut off credit cards to consolidate debt

  • March 6, 2019 at 3:51 PM

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