Debt Consolidation Calculator
Questions about debt consolidation or personal loans from UMB?
Debt consolidation can simplify or lower your debt payments by rolling balances from separate credit cards and/or loans into one monthly payment. This new monthly payment goes toward a debt consolidation loan.
Some debt consolidation loans offer lower interest rates, which can help you erase the debt quicker. Many debt consolidation plans are fixed-rate plans, meaning you’d pay the same interest rate month over month for the life of the loan.
This is a debt strategy that you should carefully discuss with a trusted financial advisor or personal banker to determine if consolidating your debt will help you achieve your financial goals.
There are generally three options you can consider when looking to consolidate debt:
Credit card balance transfer
Many credit card companies offer zero-percent or low-interest balance transfers to combine your debt from multiple cards onto one card. With this option, you may have to pay a balance transfer fee, and the promotional rate offered to transfer the balance could be for a limited time. If you have a small amount of debt that you can tackle in a short amount of time, credit card balance transfer may be a good option for you.
Home equity loan or home equity line of credit (HELOC)
A home equity loan is a fixed-rate, lump-sum loan. A HELOC is a reusable line of credit where your home with either adjustable or fixed rates. With these options, you borrow money against the equity in your home to pay off debts. These are “secured loans” because they’re backed by your home as collateral, which makes them riskier if mismanaged. For consolidated debt, you use this money to pay off your loans and then pay back the home equity loan.
Personal loan or personal line of credit
A personal loan is when you borrow a lump sum from a bank or lender, based on what you qualify for. You can use for a variety of purposes, including debt consolidation, and pay it back in installments of the original payment plus interest. A personal loan and a personal line of credit can be unsecured or secured by your financial assets or other assets, such as your car.
Before making a decision to consolidate debit, it’s very important to talk to a trusted financial partner or personal banker to decide if it makes sense for your personal situation.
UMB is committed to helping our clients reach their personal financial goals, including debt consolidation, and offers a variety of lending options for qualified borrowers. Explore our personal banking solutions to learn more about UMB credit cards, UMB home equity loans and UMB personal loans.
If you have questions about any UMB personal banking solutions, including checking accounts, savings accounts and loans, a great first step is to talk to a personal banker. Find a UMB location near you to make an appointment to meet with a personal banker at a branch or over the phone.
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