 TITLE: What Is the Best Way to Get Out of Debt? CONTENT: 3\\. Consider Debt Consolidation\n-------------------------------\nDepending on the type of debt you have, you may be able to save money by consolidating it. While there are different methods you can use to consolidate debt, the main goal is to transfer high-interest debt to a low-interest loan or credit card, which can save you hundreds, if not thousands, of dollars in interest. Here are some potential options.\n### Balance Transfer Credit Card\nIf your credit is generally in good shape, you may be able to qualify for a balance transfer credit card. These cards usually offer an introductory 0% annual percentage rate (APR) promotion when you transfer a balance from another credit card or cards.\nIf you pay off the balance during the promotional period, which typically ranges from 12 to 21 months with major balance transfer cards, you won't pay any interest on the balance transferred. Once the promotion ends, however, you will be charged the card's regular APR on the remaining balance.\nA couple of things to keep in mind:\n*   Many of these cards charge a balance transfer fee, which is typically 3% to 5% of the transfer amount. Some cards, however, opt not to assess this fee on introductory transfers.\n*   If transferring a balance causes you to max out the new card or get close to it, the high credit utilization rate, or amount of available credit you're using, could damage your credit score until you pay it down.\nA balance transfer card can be great if you have a lot of credit card debt and can be disciplined enough to pay off the balance before the promotional period ends, or shortly thereafter. If you think you might be tempted to pay just the minimum on the new card, however, this probably isn't a good choice.\n### Debt Consolidation Loans\nA debt consolidation loan is a personal loan used specifically to pay off other debts. You can consolidate many different loan types with a consolidation loan and, depending on your credit situation, you may be able to score a lower interest rate than what you're currently paying.\nUnlike balance transfer credit cards, there is no 0% APR option. Consolidation loans have a set repayment term, which gives you more certainty about what you need to pay and when you'll be debt-free. If you choose to, you can also pay more than the set monthly amount. Also, there are no potential problems with having a high credit utilization because installment loans don't factor into that calculation.\nIf your credit isn't in good shape, though, you'll be hard-pressed to find a consolidation loan with a relatively low interest rate. If the rate is significantly higher than what you're paying, skip this option. But even if it's about the same, it may be better to have a loan with a set monthly payment than a credit card balance with no end in sight. END