Don't sweat the debt: How debt consolidation works
Debt consolidation is a smart financial strategy that combines multiple existing debts into a single, more manageable loan. The goal is lower your interest rate, reduce monthly payments, and help you get out of debt quicker. Consolidating debt can also help you improve your credit score over time by lowering your credit utilization and improving your payment history.
The process may sound intimidating, but we're here to guide you! Here's where to start:
- Calculate your total debt - First, add up the total balance on all your debts, so you know the amount you'll need to consolidate.
- Find the right loan - Next, speak with a loan officer about which consolidation option is right for you. Our team is always ready to help!
The most common types of debt consolidation are balanced transfer cards, Personal Loans and Home Equity Lines of Credit (HELOCS)2.
If you have multiple high-interest cards, but prefer to keep a credit card, a balance transfer is a great option. Our Abound Platinum Visa®3 offers low rates, no annual fees and no balance transfer fees, so you can easily transfer over debt. It's a simple way to keep your finances on track and can help you save thousands of dollars in interest over time.
Looking to pay off multiple debts? Our Personal Loans and HELOCS are designed to simplify your finances. With a HELOC, you can borrow up to 100% of your home's equity2 and tap into your line of credit to cover medical debt, credit card debt and more. Monthly payments can be interest-only for the first ten years, and you only pay interest on what you use. If you prefer a fixed-rate loan, our Personal Loans may be the right fit. You can borrow up to $35,000, and no collateral is required-just your signature.
Not sure which option is right for you? Stop by your local branch today! We're ready to help you find the best path to getting debt-free faster.
1https://www.newyorkfed.org/microeconomics/hhdc
2Rates and terms are subject to credit approval. Eligibility open to Kentucky or Indiana residents. Subject to $10 membership fee, if not already a Member. Subject to $249 application fee.
3Cash back rebates on purchases made with Platinum Visa® only. All rebates will not be shown at the time of purchase but will appear on your monthly billing statement. 5% off fuel purchases paid at the pump and 1% off general retail purchases. 3% Visa® cash advance fee. Rates and terms are subject to credit approval. Subject to $10 Membership Fee if not already a member.
