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In the fourth quarter of 2023, credit card balances in the U.S. reached $1.13 trillion. Many consumers are straddled with high-interest debt that they can’t seem to get out of. A debt consolidation loan could be a good way to get some much needed breathing room.
Should I consolidate my debt?
What are some of the benefits of using a debt consolidation loan? Is a debt consolidation option right for you? The answer is more than likely “yes!”
Save money on interest: Many debt consolidation options feature lower interest rates than credit cards from banks and retail stores. These cards can reach extreme highs of over 29.99% annual percentage rate.
Make fewer monthly payments: One of the most convenient things about a debt consolidation loan is the fact that you usually just have to make a single payment on your debt. No logging into multiple sites to pay or forgetting to make a payment because you have too many loans open at once.
Save more each month: There’s a good chance the monthly payment on your debt consolidation loan will be less than what you’re paying to credit card companies. This allows you to save more money each month from your paychecks.
Pay off debt faster: You’ll be able to track your loan progress faster with a single loan. A lower annual percentage rate means you’ll knock out debt faster than with credit cards.
What are my debt consolidation options?
Depending on your situation, you can choose from three unique debt consolidation loan products (listed below). If you’re looking for help on choosing the product that’s right for you, you can always start a live chat or visit a branch. Certified credit counselors are also available to help you get back on track and get debt free.
Home Equity Loan
If you’re a current homeowner, a home equity loan or line of credit could be the most affordable way to tackle high-interest debt. You use your home as collateral to secure a low-rate loan.
Your home equity is the difference between the amount you owe on your mortgage and what your home is worth. At Arsenal, you can borrow up to 100 percent of your home’s equity. You also pay no closing fees (for things like title, appraisal, etc.), saving you between $500 to $1,500.
How do I apply? Please visit our home equity loans page and fill out our form. We’ll act as your personal concierge during your entire application process.
For those who don’t own their own home, a personal loan is an excellent debt consolidation option. You’ll get a lump sum and be able to pay off any high-interest creditors. In some cases, Arsenal staff will pay off your creditors for you.
How do I apply? Visit our personal loans page to learn more and apply online.
If you have a smaller amount of debt on a single credit card with a high annual percentage rate, you can transfer the balance to a card at Arsenal. You pay no fees when you transfer a balance. Most cards charge between three to five percent of the total balance you’re transferring.
How do I apply? Visit our credit cards page to learn more and to apply online.
Note that a balance transfer does start accruing interest immediately.
