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The Best Path to Debt Consolidation?

Santa double-checked the list – and his calculator – because Americans are expected to spend $242 billion on holiday gifts and over $310 billion on travel this year, according to NerdWallet. That's a lot of wrapping paper, bows, and tap-to-pays.

Alexa, play “All I Want for Christmas is a Lower APR.”

The new year is a perfect time to start taking charge of your debt. Whether you're ready to ditch high-interest credit card balances, fund a big expense, or simply want a little more breathing room in your budget, you have options.

PSECU offers multiple ways to consolidate debt: Home equity loans and lines of credit, personal loans, and balance transfers. Not sure which one is right for you? That's okay - we built this quick quiz that will point you in the right direction.

How the Quiz Works

You'll answer a few simple questions about your goals, comfort level, and repayment style. Then, we'll match you with a consolidation option that can help make managing your debt easier, and hopefully a lot less stressful.

Here's a sneak peek at what's on the table:

  • Home equity. If you own a home with available equity - the difference between your home's current market value and the amount of money still owed on your mortgage - options like a real estate equity loan or home equity line of credit (HELOC) can give you access to funds at lower interest rates. These products allow you to pay off multiple debts and replace them with a single, more manageable payment. Depending on the product, you may be able to choose between fixed- or variable-rate advances, a lump sum or revolving line of credit, and flexible repayment terms including interest-only or principal and interest payments.
  • Personal loan. Ideal if you need a large chunk of cash all at once, and like predictable monthly payments and a set timeline for payoff.
  • Balance transfer. Smart debt consolidation strategy if your goal is to pay down high-interest debt quickly and save on interest during a promotional period.
 

Find Your Path to Debt Consolidation

Click on the main reason you're borrowing:

I'm Consolidating High-Interest Debt, Like Credit Card Debt.

Do you own a home and feel comfortable using your home's equity?

  • Yes. You might benefit from a home equity loan or line of credit. By leveraging the equity built up in your home, you can consolidate debt into one lower-rate payment and work to pay it off while benefiting from a lower APR. We have three home equity products that can help you:
    1. Real Estate Equity Loan. Also known as a home equity loan, you'll receive one lump sum to cover the total cost of your debt and enjoy predictable monthly payments at a fixed rate for the life of the loan. You can choose between 5-, 10-, 15-, or 20-year terms.
    2. HELOC Flex. Borrow what you need, when you need it, during a 10-year draw period - the length of time during which you can borrow from your credit line up to your credit limit. You'll have interest-only payments during this period, followed by 20 years of interest and principal payments. Interest-only payments can help keep monthly expenses manageable for the first 10 years.
    3. HELOC Plus. Again, you borrow what you need, but with HELOC Plus, you have the choice of variable- or fixed-rate advances. You make monthly payments on the money borrowed, which covers both principal and interest.

Use our equity calculator to estimate how much equity you may be able to tap into.

You’re on the right track to simplify your debt.

I'm Funding a Large, One-Time Expense.

Do you own a home with equity?

  • Yes. A real estate equity loan may be your best fit. It provides you with a lump sum for big projects or purchases - like a renovation, roof repair, or college tuition – at a lower, fixed rate using your home as collateral.
  • No. A personal loan gives you quick, predictable funding for a variety of expenses like home repairs, vacations, and even an engagement ring. You'll know exactly what you owe each month and when it'll be paid off.

    Use our personal loan calculator to estimate your monthly payment.

    Another option would be our Classic Card. Apply to become a new cardholder, and you can enjoy our 0% Intro APR for up to 12 months on purchases made within the first six months when you open your Classic Card and make your first purchase by March 31, 2026. When the promo wraps up, you'll enjoy 12.9% APR (subject to change). Get all the promo details and apply for your Classic Card at psecu.com/classic.

These options keep you in control of your budget while funding that bigger purchase responsibly.

I Need Flexible Access to My Funds.

Are you a homeowner with equity to use?

If you like the idea of having funds available as you manage debt on your timetable or as life happens, a HELOC might be your best fit. It works similarly to a credit card: you can borrow and repay as needed during a draw period, but usually with lower rates than a credit card.

This is perfect for ongoing expenses, home improvements, or larger unpredictable costs like an emergency vet visit or a broken refrigerator.

  • HELOC Flex. Provides maximum flexibility with interest-only payment options during the draw period.
  • HELOC Plus. Adds the ability to convert portions to fixed-rate advances for more stable payments.

Not a homeowner or don't have enough equity yet?

There are still ways to flexibly manage multiple debts. Consider these options:

  • Classic Card. If expenses pop up here and there rather than all at once, our Classic Card can help you manage them without added pressure. New cardholders can take advantage of our 0% Intro APR for up to 12 months on Classic Card purchases made within the first six months (when you open and make your first purchase by March 31, 2026). This can give you time and some breathing room to pay things down before interest kicks in.

    When the promo wraps up, you'll enjoy 12.9% APR (subject to change). Get all the promo details and apply for your Classic Card at psecu.com/classic.
  • Balance transfer. If you already have our Classic Card, you can move existing balances over and get a 2.90% APR balance transfer rate through March 31, 2027. Calculate your estimated borrowing capacity using a HELOC.

I'm Paying for a Small, Unexpected Expense.

Even smaller balances, like a medical bill, car repair, or lingering credit card charges from the holidays, can snowball quickly. Consolidating those short-term debts can help you simplify payments, reduce interest, and free up breathing room in your budget.

How soon could you pay it off?

  • Within 1-3 months. A Visa balance transfer could help if you're juggling short-term credit card debt and want to save on interest. Transfer those smaller, high-interest balances to a lower-rate PSECU credit card and pay them off faster, often saving on interest while you do.

    Now through December 31, 2025, move high-interest balances to our Classic Card and enjoy our low Visa Balance Transfer rate.
  • Need more time. A personal loan can help you roll multiple smaller debts into one structured plan with predictable payments and a clear payoff date.
  • Prefer short-term flexibility for a one-time need. Don't forget about our Classic Card's 0% Intro APR for up to 12 months on purchases made in the first six months when you open and make your first purchase by March 31, 2026. After that, your APR will be a low 12.90% (subject to change). It's an easy way to cover a one-time cost and pay it down before interest kicks in.

Any way, you're tackling debt head-on, and that's what counts.

 

Debt Consolidation Options at a Glance

Features Real Estate Equity (Home Equity Loan) HELOC Flex HELOC Plus Personal Loan Visa® Balance Transfer
Best for… Homeowners who've built up equity in their home and need a lump sum installment Homeowners who want flexible use of their funds and to make interest-only payments during a 10-year advance period Homeowners who want flexible use of their funds and the option of variable- and fixed-rate advances Borrowers who want a set amount and fixed payments Paying off high-interest debt and saving on interest
Loan type Fixed lump sum installment loan secured by home Revolving line of credit, borrow and repay multiple times up to a set limit Revolving line of credit, borrow and repay multiple times up to a set limit Lump sum installment loan Credit card with promotional balance transfer
Typical rate Fixed rate for the entire term of the loan Variable rate advances; usually lower because it's secured by your home Fixed or variable rate advances; usually lower because it's secured by your home Fixed rate, often lower than credit card rates Promotional APR lower than standard credit card rates
Minimum loan / advance / balance transfer amount $5,000 loan minimum $5,000 loan minimum; no minimum advance amount $5,000 loan / fixed-rate advance minimum; no minimum variable-rate advance amount $1,000 loan minimum (max amount is $20,000) $250 balance transfer minimum through digital banking; no minimum when using a Visa balance transfer check (max is credit card limit)
Collateral required Yes (your home) Yes (your home) Yes (your home) No No
Flexibility Low – one-time funding with set repayment schedule High – borrow as you need High – borrow as you need Low – fixed amount and term set up front Moderate – limited to credit limit and promo window (standard credit card APR is low, even if the balance isn’t paid off before the promo period ends)
Speed of funding Moderate – may require appraisal or closing Moderate – may require appraisal or closing Moderate – may require appraisal or closing Quick approval and funding Fast
Risk factors Secured by your home; cannot re-borrow without a new loan Tied to your home as collateral; variable rates may change Partially fixed rates, but still tied to your home as collateral Fixed payment obligations Higher interest rate after the promo ends if balance isn't paid off
Ideal repayment timeline Mid- to long-term Ongoing use or long-term Ongoing use or long-term Mid- to long-term Short-term (usually under 18 months)
 

Tackle Debt the Right Way

Whichever path you land on, consolidating your debt can make your financial life a little easier, and may even save you money on interest. Plus, it's a great way to set yourself up for a fresh start in the new year. For more tips and tools to help you keep your finances on track, visit our resource center.

 

Additional Resources

 

1PSECU Visa® Classic Card/Visa® Alumni Classic Card: Promotional Visa Balance Transfer Rate Offer– PSECU is offering a promotional rate of 2.90% APR on all Visa balance transfers that post to your account on October 1, 2025 through December 31, 2025 (“promotional period”). Any Visa balance transfers that post to your account after December 31, 2025, are not eligible for this promotional rate offer. The promotional rate will continue to apply to Visa balance transfers made during the promotional period until March 31, 2027. Thereafter, any remaining unpaid portion of your original balance transfer(s) made during the promotional period will be subject to the current APR for balance transfers, which is 12.90% APR as of 10/17/2025 03:05:15 PM and is subject to change at any time. APR denotes Annual Percentage Rate. Visa balance transfers are limited to the available credit of your Visa credit limit. PSECU Visa Business Cards are not eligible for this promotional rate offer. Payments will be applied as stated in your Visa® Classic, Visa® Alumni Classic, and Secured Visa® Consumer Credit Card Agreement and Disclosure. A minimum of $250 must be requested for balance transfers through digital banking. The 2.90% APR promotional offer cannot be used to pay off any PSECU loan or be made payable to cash, yourself, any joint owner(s), or co-maker(s). Balance transfers access credit under the terms of your Visa® account as stated in the Visa® Classic, Visa® Alumni Classic, and Secured Visa® Consumer Credit Card Agreement and Disclosure.

2PSECU Visa Classic Card/Visa Alumni Classic Card/ Secured Visa Introductory APR Offer: APR denotes Annual Percentage Rate. PSECU is offering an introductory rate of 0.00% APR for purchases made with newly acquired Visa® Classic Card, Visa® Alumni Classic Card, and Secured Visa® credit cards opened by members between October 1, 2025, and March 31, 2026. To activate the introductory rate, your first purchase must post to your account by March 31, 2026. Once activated, you will have 6 months from the date your first purchase posts to your account to make additional purchases at 0.00% APR. This is referred to as the “Purchase Window”. To be eligible for the 0.00% APR, all purchases must post to your account during the Purchase Window.  The 12-month Promotional Period for the 0.00% APR begins on the date your first purchase posts to your account (the “Promotional Period”).  If you make multiple purchases throughout the Purchase Window, only purchases posting to your account on that first day will receive the full Promotional Period of 12 months.  Additional purchases posting to your account after the date your first purchase posted to your account will receive 0.00% APR, but only for the remainder of the 12-month Promotional Period.

Example: If your first purchase posts on December 1, 2025, you will receive 0.00% APR on that purchase for the full 12-month Promotional Period through December 31, 2026 (Promotional Period end date). The 6-month Purchase Window ends on June 1, 2026.  You may make additional purchases at the promotional rate through June 1, 2026 (end of the 6-month Purchase Window). Any purchases made during the Purchase Window, such as one that posts on February 1, 2026 will also receive 0.00% APR through December 31, 2026 (the same Promotional Period end date as the first purchase, but resulting in 10 months at the 0.00% APR).

After the Promotional Period ends, any remaining balance from those purchases (and any new purchases posted after the Purchase Window) will be subject to the standard APR for purchases, which is 12.90% as of October 1, 2025 and is subject to change at any time. Purchases are limited to the available credit of your Visa credit limit. Cash advances and balance transfers are not eligible for this introductory rate.  PSECU Visa Business Cards are not eligible for this introductory rate offer. Subject to credit approval. See your Visa® Classic, Visa® Alumni Classic, and Secured Visa® Consumer Credit Card Agreement and Disclosure and Visa Classic, Visa Alumni Classic and Secured Visa Credit Card Account Opening Disclosure for terms of your Visa Classic Card and how payments will be applied.  PSECU is not responsible for delays caused by force majeure, acts of God, or third parties in the posting of your purchases. PSECU may terminate this introductory rate offer at any time and without any notice.  PSECU will honor this introductory rate for any applications in-process on the date of such termination.

3Visit lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/ to see today's latest rates.

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

By: PSECU