Yes, although it depends on your situation. If you have good credit and a limited amount of debt, you probably won’t need to close your existing accounts. You can use a balance transfer or even a debt consolidation loan without this restriction. Getting a balance transfer credit card never comes with restrictions. If you get approved for the card, the creditor will not require you to close your other cards.
After going ahead with a credit card debt consolidation loan and bringing the amount owed to your credit card providers down to $0, it’s not recommended to cancel your credit card accounts. Having a zero-balance credit utilisation ratio will boost your credit rating.
If you do close your credit accounts off then your available credit will shrink, lowering your credit utilisation ratio and if you need to access finance in the near future, it will be a much harder if you have to go through the process of applying for & being approved credit cards again.
If you find yourself being too tempted with your credit cards still being available, then lock them or store them away somewhere safe to avoid the temptation. Do you have issues with controlling your spending or living beyond your means? If so, you need to address these problems before looking to enter into a finance agreement such as a debt consolidation personal loan. Otherwise, you could face serious financial problems later down the line. Without controlling your spending, you could end up with a high level of outstanding debt again before too long.
If you are feeling overwhelmed by debt there are people who can help. The free National Debt Helpline is open from 9.30am to 4.30pm, Monday to Friday.