If you're buried under $50,000 or more in credit card debt, you're likely feeling some serious financial strain. For starters, the minimum payments on that high of a balance will barely make a dent and the compounding interest charges are relentless. Plus, juggling multiple balances each month can be downright overwhelming. And now, with credit card APRs hovering near record highs — averaging about 22% currently — it's easy to see how your credit card balances can balloon even faster than you can pay them down.

You aren't the only one facing this type of issue, either. The nationwide recently surged to $1.18 trillion, according to data from the Federal Reserve Bank of New York. And while inflation has cooled significantly compared to recent highs, the costs of everyday goods are still high, forcing more people to lean on plastic to cover basic expenses. For those dealing with credit card balances of five figures or more, debt consolidation can offer a much-needed reset by simplifying the repayment process and lowering your interest costs. 

But here's the tricky part: When you owe this much, the wrong move could do more harm than good, especially when it comes to your credit. So if you're thinking about consolidating $50,000 (or more) in credit card debt, it helps to understand the ways you can do it without wrecking your credit score.

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How to consolidate $50,000 (or more) in credit card debt without hurting your credit

Depending on your credit profile and financial situation, the following options can help you get out from under that mountain of debt without damaging your credit health:

Take out a personal debt consolidation loan

A personal loan is one of the most straightforward ways to consolidate high-rate credit card debt, especially if you have strong credit and a solid income. These unsecured loans let you pay off all your cards at once and replace them with a single fixed monthly payment.

• How it works: You apply for a lump-sum personal loan, use the funds to pay off your credit card balances, and then make one consistent monthly payment towards the loan for a set period. The big benefit is that average about 12% currently, so this move could help you save a significant amount on the interest charges.
• Why it helps your credit: Once your credit cards are paid off, your credit utilization will drop significantly, which could give your score a nice boost. Plus, personal loans are installment debt, so they diversify your credit mix without adding revolving debt.
• What to consider: Many lenders cap personal loans at $50,000, so if your total credit card debt is higher, you might need to combine this option with others or look for lenders who offer higher limits. You'll also want to make sure the loan terms don't come with steep origination fees or early repayment penalties.

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Use a home equity loan or HELOC

If you own a home and have built up equity, you may be able to borrow against it to pay off your credit cards. Home equity loans and home equity lines of credit (HELOCs) often come with significantly lower interest rates than credit cards or unsecured loans because they're secured by your property.

• How it works: With a home equity loan, you get a lump sum and pay it back in fixed installments over time, which is ideal if you need to consolidate a specific amount. A HELOC, on the other hand, works more like a credit card: You borrow as needed up to a certain limit and only pay interest on what you use.
• Why it helps your credit: Like personal loans, using home equity to pay off credit cards can dramatically lower your credit utilization ratio. And because these loans don't count as revolving debt, they can help your credit profile appear more balanced and stable.
• What to consider: This option only works if you have enough equity in your home, and you'll need a good credit score to qualify for favorable rates. Also, since your home is the collateral, you risk foreclosure if you miss payments. 

Work with a credit counseling agency

For those with less-than-perfect credit or limited borrowing options, a credit counseling agency can be a helpful lifeline. These agencies offer debt management plans that bundle your unsecured debts into one monthly payment and often come with reduced interest rates negotiated on your behalf.

• How it works: After reviewing your financial situation, a certified counselor sets up a debt management plan, usually with lower interest rates and waived fees. You send one monthly payment to the agency, and they distribute it to your creditors.
• Why it helps your credit: Unlike debt settlement, these plans don't require you to stop paying your creditors. That means your accounts remain in good standing (or return to good standing over time), helping you avoid the major score drops that come from charge-offs or collections.
• What to consider: Some creditors may freeze your accounts while you're on the plan, which could slightly reduce your available credit. But overall, your credit score is likely to improve as you make consistent on-time payments. 

The bottom line

Consolidating $50,000 or more in credit card debt is a serious move, but if done wisely, it can help you break free from financial stress without wrecking your credit. To do that, though, you'll need to choose a strategy that fits your credit profile, income and long-term goals. But whether you qualify for a personal loan, can leverage your home equity or need help from a credit counseling agency, there are paths forward. So, take the time to explore your options, and don't be afraid to ask questions. The right move today can lead to financial freedom tomorrow.