Debt Consolidation

What is a debt consolidation loan?

A debt consolidation loan is a new loan taken out for the purpose of paying off one or more existing loans. Field and Main offers Home Equity Lines of Credit (HELOC) for debt consolidation. Just about any debt can be consolidated, such as personal and student loans, medical debt, credit card balances, and more.

Why Consolidate Debt

Usually, consolidating your debt with a new loan offers a better interest rate and terms to help you save money and lower debt. This is true with our HELOC for debt consolidation. Because they are secured by the equity in your home, HELOCs have a variable interest rate that is typically lower than unsecured loans and credit cards.

Consolidating debt also allows you to have just one monthly debt payment instead of several. With a HELOC, you can make the minimum payment or any amount over that. The option to make additional principal payments allows you to pay off the debt as quickly as you choose.

How Does a HELOC for Debt Consolidation Work?

A HELOC is a type of credit line secured by the equity in your home. With a HELOC, you’re approved for a certain borrowing limit and can borrow what you need to when you need to. Then, you can make the minimum interest monthly payments, pay more than the minimum to pay down the principal balance, or make more than one monthly payment. As you pay down the balance, you can continue using your HELOC repeatedly for the total length of the loan term.

At Field and Main, our HELOCs offer:

• Combined borrowing up to 90% of your home’s value.
• Competitive interest rates.
• Quick, local decisions.
• Online access to rates and applications.

Should I Consolidate Debt? 

If you have enough equity in your home, a good credit history, and want to restructure your current debt balance because of varying interest rates and due dates, debt consolidation may be a great option for you. Using a HELOC to consolidate debt can help serious homeowners like you pay off your existing debt without accruing more debt. Talk to one of our lenders to find out if a debt consolidation loan is right for you!

Apply for a Debt Consolidation Loan!

Homeowners can apply for a new HELOC for debt consolidation online or by visiting one of our locations in Henderson, Lexington, and Cynthiana, Kentucky, or Evansville, Indiana. Have questions? Contact a Lender or use our financial calculators to test different scenarios.