Debt Consolidation Options
Learn about all of your debt consolidation loan options and what's the best option for you.
Read MoreDebt Consolidation Loan
Enjoy one simple payment and peace of mind.
Struggling to juggle multiple debts from high-interest credit cards, loans, or bills? Don’t let financial stress overwhelm you. Instead, consolidate your debt into a single, manageable loan. With lower interest rates or extended repayment terms, you can regain control of your finances. Whether it’s through a personal loan, home equity loan, or low-interest credit card, our expert team can guide you toward the right solution. Take control of your finances today. Please note that this involves securing a new loan to pay off existing debt. Minimum credit score and debt-to-income requirements are required.
Benefits
Streamline Finances
Combining multiple debts into a single loan reduces the number of payments and interest rates you have to worry about–one loan, one monthly payment.
Lower Payments
Your overall monthly payment may decrease when payments are spread out over a longer period of time or if you receive a lower interest rate,1 freeing up some extra monthly cash.
Credit Boost
Paying off multiple debts through consolidation could improve your credit utilization ratio (the amount of debt you have relative to your available credit), which may improve your credit score.
How do you consolidate debt?
Consolidating debt means rolling multiple debts, typically high-interest debt such as credit card bills, into a single payment. By doing so, you may be able to obtain more favorable payoff terms, such as a lower interest rate, lower monthly payments, or both. But debt consolidation isn’t one size fits all. Depending on your unique situation, there are several loan options to consider. Find the one that’s best for you below.
Personal Loan
- Borrow up to $25,000 with no collateral required
- Get one lump sum, and repay monthly with a fixed, affordable monthly payment
- Enjoy $0 application/$0 origination fees
Low-Rate Credit Card
- Transfer your high-rate debt and save on interest with a lower rate
- Save money and pay off debt faster
- Enjoy $0 annual fee/$0 application fee
- Built-in Mastercard protection
Auto Refinance
- Refinance your existing vehicle and “cash-out” the equity
- Enjoy one fixed rate – no surprises
- Plus, there are no payments for up to 90 daysInterest continues to accrue during the deferred payment and credit score determines rate. First payments may be due up to 90 days from the date of the signed contract.
Home Equity Loan
- Borrow up to 95% of your home’s valueBorrow up to 95% of your home’s value, minus your mortgage balance.
- Feel secure with a fixed rate and payment for easy budgeting
- Enjoy $0 application fee
- Easy online application
Home Refinance
- Refinance and cash-out your home equity
- Get a longer repayment term for more manageable monthly payments
- Enjoy one fixed rate—no surprises
How should you consolidate your debt?
Just answer a few questions, and we’ll help point you in the right direction.*
*The content of this quiz is for illustrative and informational purposes only and may not apply to your individual circumstances.
Free Credit Score Monitoring
Get notifications on credit changes and monitor your progress with no impact to your score.
- Check your credit score and report
- Get personalized tips to raise your score
- Receive credit monitoring alerts
Frequently Asked Questions
How does debt consolidation work?
Debt consolidation is a three-step process:
- Take out a new loan (such as a personal loan, home equity loan, or low-rate credit card).
- Use the new loan to pay off your debts.
- Pay off the new loan.
How do I know if I need debt consolidation?
Debt consolidation could be a good fit if you’re struggling to pay your creditors each month.
How does debt consolidation help?
Debt consolidation combines multiple debts into a single loan. Combining your debt into one monthly payment simplifies your debt and makes it easier to manage. Plus, debt consolidation could save you money because it may also reduce the overall interest you pay.
What’s the best way to consolidate debt?
Most people find that a personal loan is best to consolidate debt, especially if they don’t own a home. Personal loans are considered unsecured, meaning they don’t require collateral. However, if you’re a homeowner, you may find that a home equity loan may be a better option. As you can see, debt consolidation isn’t one-size-fits-all. That’s why we offer several ways to consolidate debt through personal loans, home equity loans, auto or home refinances, and low-rate credit card balance transfers. To find out which is best for you, take our debt consolidation quiz or call us at 800.456.3000.
How much does it cost to consolidate debt with Arkansas Federal?
Enjoy $0 application fees on most of our debt consolidation options (personal loans, low-rate credit cards, auto refinances, and home equity loans). However, a home refinance will come with closing costs and fees.
Can I consolidate my debt with a bad credit score?
Our rates may vary depending on your credit score and underwriting factors. So, check your score before consolidating. An easy way to do this is through Credit IQ if you’re an Arkansas Federal member. It’s a free tool; once you know your credit score, you can even find tips to improve it if needed.
How much debt should I consolidate?
The first step to determining how much you should consolidate is to determine your debt. Add up all of your debt to help you determine how much to borrow.
How do I keep track of my account?
You can view your monthly payment history and account balances through our Digital Banking, available on mobile and desktop.
How does debt consolidation affect my credit score?
While everyone’s credit situation differs, debt consolidation can improve your credit score over time if you make regular on-time payments.
What will my payments be like?
Unlike credit cards with a variable or changing rate, when you consolidate your debt with a personal loan, home equity loan, or refinance your home or auto loan, you’ll enjoy the same monthly fixed payment. So, there are no surprises. Plus, you’ll have a set payoff date and know exactly when it will all be paid off. Win-win! However, if you consolidate your debt with a low-rate credit card, you may experience lower payments than you’re used to, but this rate is still variable and may change.
