Paying off debt with a balance transfer card can sometimes be a catch-22: They typically require good credit to qualify, but those who need them most often have credit issues.
While a 0% balance transfer card can be a great fit for some, it’s often not a reliable solution for everyone. Not only are they difficult to qualify for, but they typically charge fees and can tempt you into overspending again.
These types of cards can be a popular option, but everyone’s debt is different. If you have too much debt for a balance transfer card to cover or are worried about qualifying, CNBC Select goes over a few alternative choices.
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Managing debt without a balance transfer card
The catch with 0% APR offers
Many promotional APR offers are zero-interest, and with the average credit card interest rate hovering just under 21%, these offers can often save you hundreds or thousands in interest charges.
But according to Federal Reserve credit card data, just 11.25% of large bank accounts had a promotional APR in 2025, the lowest percentage since the second quarter of 2021. Not only are these offers becoming more scarce, but 0% APR cards often require a good credit score to qualify, making it harder for those in credit card debt (with poor credit) to qualify.
Further, most balance transfer cards charge a fee for transferring — generally 3% to 5% of the total balance. According to Experian, the average consumer had a credit card balance of $6,735 in June 2025. If you were to move that balance to a balance transfer card, the fee could be up to $336, which might not be an option for everyone.
When is a balance transfer card a bad fit?
Even if you’re able to qualify for a balance transfer card, there are still times when it’s not the right option.
If you don’t realistically think you’ll be able to pay off your debt by the end of the 0% APR period, the remaining balance will start to accrue at the card’s regular APR. This rate could be close to 20% or higher, making it difficult to pay off your leftover debt and running the risk of it growing larger.
If overspending on non-essentials with credit cards is what got you into debt in the first place, getting access to a new line of credit might not be the best idea. Even if you plan to only use it for certain purchases, there’s no point in inviting temptation.
A card offering a 0% APR still requires a minimum payment. If you don’t have a stable income and you miss a payment, you’ll likely get hit with additional fees and damage to your credit score.
Get back on track with a budgeting app
What other credit card debt payoff options exist?
Look into credit counseling
Credit counseling, usually provided by nonprofit organizations, is a service that works with you to help you better understand your finances, make a personalized budget and come up with ways to help you tackle debt.
For those in a large amount of debt, a debt management plan (DMP) might be suggested. With a DMP, you make arranged debt payments set up through your credit-counseling organization. For issues like credit card debt, a credit counselor typically reaches out to your issuer and works with them to establish an acceptable payment schedule. The card issuer can also agree to certain helpful terms, like a reduced interest rate or fee waiver.
This method is best if you have a significant amount of credit card debt but still have a steady income. If you have a lower amount of debt or wouldn’t be able to commit to a consistent repayment amount, a DMP likely isn’t going to work.
Take out a debt consolidation loan
If you have debt across multiple different credit cards, a debt consolidation loan might be the best option. This lets you make a single payment instead of multiple, and you’ll likely have a much lower APR on the new loan (personal loans typically have lower APRs because they’re repaid on a fixed schedule, making them less risky for lenders than revolving credit like credit cards). Additionally, personal loans often have fixed rates, meaning the APR won’t change for the duration of your loan.
A debt consolidation loan is also a better option if your cumulative debt is so large it likely won’t fit on a balance transfer card. (Balance transfer cards typically limit your total transferable amount to the card’s credit limit, so if you have $30,000 of debt, it’s unlikely you’d find a card that will accommodate the full amount.) Plus, this way you can’t be tempted into spending more; instead, you can focus on making your monthly payments.
Upstart is great for those whose credit may have been impacted by debt. It considers applicants with credit scores as low as 300, plus those who might have insufficient credit history. You can borrow anywhere from $1,000 to $75,000 and, while your APR will be determined by a number of factors, it could be as low as 6.3%. It offers debt consolidation loans with three- or five-year terms.
We like that Upstart considers factors besides credit score, including education, income and employment history. You can secure your loan with an eligible vehicle, but co-signers aren’t accept.
If you’d prefer more flexibility with the terms of your loan, Upgrade has repayment terms ranging from 24 to 84 months. You can borrow up to $50,000, and you should get your funds within one business day
We like that Upgrade considers borrowers with fair credit and allows you to apply with a co-borrower, which can improve your odds of approval and receiving favorable rates. The maximum interest rate is on the high side, however.
- Accepts applicants with fair credit
- Approves loans of up to $75,000
- Discount for having creditors paid directly
- Funding in as little as one day*
- Accepts co-borrowers.
- High maximum interest rate
- Origination fee of up to 9.99%
- No physical branches
Why Upgrade is the best for financial literacy:
- Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
- Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
- Ability to sign up for free credit monitoring and weekly VantageScore updates
Consider debt settlement if repayment isn’t realistic
In the right situations, debt settlement could help you get your creditor to agree to settle for less than what you currently owe. Creditors may do this because they decide that getting a percentage of what they’re owed is better than nothing. This is often a higher-risk option as you stop making debt payments during the settlement negotiation process, which can damage your credit score. Debt settlement companies also typically charge fees, often in the range of 15% to 25% of the debt.
For those who want to consider it, National Debt Relief offers plans that range from 24 to 48 months, and you can save up to 45% before fees. Instead of paying your bills, you’ll deposit the monthly payments into a separate savings account, which will then be used to pay upon successful negotiations.
National Debt Relief
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Minimum debt
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Fees
The settlement fee is 15% to 25%, depending on the amount enrolled and the state you live in.
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Availability
Available nationwide except in Connecticut, Oregon, Vermont, West Virginia and Wisconsin.
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Highlights
According to National Debt Relief, clients who complete its debt settlement plan can reduce their enrolled debt by an average of 20% to 25%, after fees.
Pros
- Only $7,500 in debt required
- A+ rating from the Better Business Bureau
- Accredited by the American Association for Debt Resolution and the International Association of Professional Debt Arbitrators
Cons
- Not available in Connecticut, Oregon, Vermont, West Virginia or Wisconsin
FAQs
Does debt settlement hurt your credit?
The debt settlement process will likely hurt your credit score since you stop paying your creditors, and payment history is the most important aspect of your credit score.
What are the downsides of debt settlement?
On top of credit score damage, debt settlement doesn’t guarantee results. Even if it does work, some companies charge very high fees.
Is it a good idea to consolidate debt?
While it depends on your specific situation, debt consolidation can help you better keep track of your payments and get you a lower APR.
What credit score is needed for debt consolidation?
Having a higher credit score can make it easier to get approved for a debt consolidation loan, but there are certain companies — like Upstart — that cater to those with subpar credit.
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