Blog Highlights

• Find Clarity: The right solutions can turn confusion into clarity and put you back in financial control.

• Explore New Strategies: Discover new action plans that simplify payments, lower interest rates, and give you peace of mind.

• Get Support: Learn how to manage debt effectively with tools and resources from Peach State and the industry experts at Balance.

Managing debt can feel overwhelming. Whether you’re trying to combine multiple balances, secure a lower interest rate, reduce your monthly payments, or eliminate debt entirely – the right mix of financial tools and strategies can help you regain control of your finances. Many of these options can be used together, on their own, or revisited as your situation changes. Below is a closer look at key debt-reduction strategies and the goals they can help you achieve.

1. Balance Transfers: Simplify & Save on Interest

A balance transfer allows you to move multiple high-interest credit card balances onto a single card with a lower rate – often with a promotional 0% APR offer.¹ With less of your payment going towards interest, more goes directly to reducing the principal – helping you chip away at the balance faster.

Best for:

• Eliminating balances with high APRs
• Combining multiple credit card payments into one
• Anyone who wants to focus on faster principal reduction

Helpful Tip: While making a credit card balance transfer is a great solution for most people, there are times when it would be wise to refrain from making a credit card balance transfer. Learn more in our When a Balance Transfer is a Terrible Idea blog.

2. Refinance to a Lower Rate 

Refinancing isn’t just for mortgages. In many cases, vehicle loans, personal loans, and even certain student loans, can be refinanced to secure a better rate, term or monthly payment. A lower interest rate means a lower payment and less money lost to interest over the life of the loan. The savings you gain can then be redirected toward other debt to help you reach your payoff goals faster. 

Best for:

• Improving monthly cash flow
• Potential interest rate savings
• Anyone who wants to accelerate payoff goals

Helpful Tip: If you have an auto loan elsewhere, and would like to know how much you may be able to save if you refinance your auto loan with us, give our Car Refinance Calculator a try!

3. Mortgage Refinance with Cash-Out: Pay Off High-Interest Debt

If you're a homeowner with available equity, a cash-out refinance can be a good solution for eliminating high-interest debt or loans with large balances such as credit cards, certain student loans, or medical bills. Consolidating these obligations can streamline the number of payments you manage, potentially lower your overall interest costs, and ease financial stress.

Best for

• Private or unsubsidized student loans
• Debts with large balances or high interest rates
• Anyone who wants a long-term reset

Helpful Tip: Learn more about unlocking your home’s equity value to determine whether a cash out refinance or home equity loan fits your financial needs.

4. Make Extra Principal Payments

One of the simplest and most efficient strategies to reduce debt is to make extra principal payments (even small ones) on your loans. Whether you round up your payment to the nearest $25, $50, or $100, or set up an automatic weekly transfer, every additional dollar applied to the principal accelerates your payoff.

Best for:

• Accelerating payoff goals
• Building faster equity in a home or car
• Anyone who wants steady, compounding progress

Helpful Tip: Try this FREE how to get out of debt fast roadmap to consolidate debt using the Snowball Method.

5. Remove Private Mortgage Insurance PMI

If you have private mortgage insurance (PMI) and your home’s value has increased or you’ve paid down enough of your mortgage balance, refinancing may allow you to remove PMI altogether. Eliminating this extra cost can significantly lower your monthly mortgage payment and improve your cash flow. Plus, the money you save each month can be used to pay additional principal payments on your mortgage, pay down other debts more aggressively, or achieve another important financial goal.

Best for:

• Homeowners with growing equity (or want to build equity faster)
• Homeowners seeking lower monthly expenses
• Anyone who wants to improve their financial flexibility
  
  

6. Change Loan Term to Improve Cash Flow

Extending your 15 year mortgage term to 30 years isn’t about giving up – it’s about creating breathing room in your budget. A lower monthly mortgage payment can free up cash to tackle other high-interest debts, cover essential expenses, or to accelerate other payoff goals. If you’re a homeowner juggling multiple financial priorities, adjusting your mortgage loan term may be a savvy way to add cushion to your cashflow.

Best for:

• Families managing tight budgets
• Lowering your monthly mortgage payment
• Anyone who wants to prioritize retirement or college savings

Helpful Tip: If you have an Adjustable Rate Mortgage (ARM), we’ve created this guide to help you understand your options so that you know the best time to refinance your ARM.

7. Speak with a Financial Coach at Balance

Managing debt effectively can help you reduce stress, strengthen your financial future, and help you reach your goals sooner. As a Peach State member, you have FREE access to financial education and resources from the industry experts at Balance. Their services include debt and budgeting coaching, assessing your financial health, and helping you create a realistic, sustainable plan to become debt-free.

Helpful Tip: If you're considering using a credit repair company to "help" fix your credit, be sure you understand the risks and hidden dangers involved. 

We Have Smart Options – and Support

Debt doesn’t have to define your future. With the right combination of tools, you CAN get out of debt and we're here to help! If you’d like personalized guidance or want to explore which options are the right fit for you, we’re always ready to support your next step. Let’s move forward together – contact us today!

1  APR – Annual Percentage Rate. The 0% introductory APR applies to purchases, cash advances and balance transfers. Offer applies to new Visa Credit Card accounts only and may expire at any time; does not apply to account upgrades. If you are upgrading from a rewards card to a non-rewards card, then your points will expire at the time of the upgrade. The 0% APR is effective for the first six statement periods following the opening of your account. The APR will return to the annual percentage rate of your approved card type after the promotional period, or if you fail to make a minimum periodic payment during the promotional period within 60 days from the due date for that payment. Rates range from 6.9% to 14.9%. A $15 application fee is charged for processing. Subject to credit approval.