Punk Rock Debt Consolidation?

 Hi there! So first, I'd like to issue a Content Warning for talk about money and finances. This can definitely be a sore point, so move along if you need to.

Also I am NOT ohoohohohoho nooo not a financial expert or consultant, so take this anecdotally-based advice at your own risk.

So here's some of the ins and outs of what I've been up to lately. First, I'd like to talk about my experience with the Care Credit card. This is the one we often hear about in relationship to having excess vet bills, etc.

The long and the short of it: If you can prevent taking out one of these, or even a similar thing from a mainstream bank, DON'T DO IT. With a 30% APR and an only 1-2 month grace period til repayment in a lot of cases--I can't stress this enough, but this is predatory.

A better alternative: First, consider banking with a credit union for your regular stuff if you don't already. Make sure it's reputable.

I can't speak to how much longevity is required with a credit union and whether that impacts you getting approved for a credit card through there, but based also on my credit (which again, I am privileged, mine is pretty good and that is NOT the case for all), I was able to get approved for a MasterCard with a 13.75% APR. GROWNUP THINGS, YALL. This was definitely not a possibility in my twenties when I had pretty much no credit built up (BTW, could we all just boycott credit? would that work? Probably not but that's why I'm not a financial expert). So anyway that felt nice.

I had some surprise help paying off the Care Credit card. Systemic privilege, y'all! So that was a relief to be over and done with but when given the option, I would really say, avoid. Cause yikes. I would have had so much accruing debt at that 30% rate.

Part 2: Balance Transfer on another credit card

So I've had and been paying off this other credit card since my late 20s, via Capital One. That card has an APR of 20.15%-- still yikes, but not nearly the 30% they are starting a lot of cards off with now. Mega ugh. So once my new Credit Union MasterCard was open and confirmed (the one for 13.75%) I immediately contacted my bank and asked how the process of balance transfer works. Please note a few specific things per my situation:

-On the CapitalOne card, I have a balance of under 2k. I don't know whether more issues would come up if you had a much larger balance, but presumably up to the credit limit for the new card could be accommodated.

-There's typically a 30 day period for balance transfers to go through, so be prepared to keep paying on the former credit card through then.

But it looks like I may have done it--used my new card, with a higher credit limit, which will be for vet emergency stuff, etc to receive a balance transfer from the old, higher-rate credit card. I'll be able to close that card, call it a day, and then have all my accounts administrated under my Credit Union going forward, once it all goes through. I am super thrilled about this! My Credit Union MasterCard also has a 0% intro APR for 6 months from now, during which I can keep chipping away at that balance, in the way I would've kept making a monthly payment on that other card, but with none getting eaten by interest. Effectively, it was like a bit of a punk rock engineered debt consolidation.

If you've been building some credit for a while, I encourage you to look into banking at a credit union, and seeing about the lowest-rate CC you can get approved for. Obviously all our needs vary, you might have higher needs, and that doesn't make you a bad person. But don't be afraid to go slowly and shop around.

Big disclaimer: I have not tried doing anything like this with student loans, and wouldn't know whether it's possible or the best idea.

Another disclaimer: I don't know how stuff like this affects one's credit. I know that a credit score can go down at least temporarily when you pay off an account you've had for a long time, so just be aware of that.