Debt Consolidation Options
Learn about all of your debt consolidation loan options and what's the best option for you.
Read MoreReady to save big and simplify your life? It’s easy. Combine your multiple debts from credit cards, high-interest loans, and other bills into a single loan with one low monthly payment that fits your budget. Save money with a lower interest rate or gain the advantage of a longer repayment window to better manage your daily budget.
A lower rate can help you save hundreds or even thousands on interest.Savings vary based on the rate and term of your existing loans.
Put less money toward interest and enjoy paying down your debt sooner.Savings vary based on the rate and term of your existing loans.
Simplify and streamline your finances and make fewer payments each month.
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.
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.
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Debt consolidation could be a good fit if you’re struggling to pay your creditors each month.
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.
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.
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.
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.
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.
You can view your monthly payment history and account balances through our Digital Banking, available on mobile and desktop.
While everyone’s credit situation differs, debt consolidation can improve your credit score over time if you make regular on-time payments.
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.