As summer approaches, you may be looking forward to a trip to the beach, camping with friends and family, or hitting the water in your boat. But if you’re carrying high-interest debt, there may not be much room left in your budget for the things you’ve been planning. 

Consolidating your debt can give you some breathing room in your finances heading into summer. It allows you to restructure what you owe to reduce interest costs or lower monthly payments. Here’s how it works and how to prepare for the season ahead.  

DIAGNOSE YOUR DEBT BEFORE YOU CONSOLIDATE

Before choosing a consolidation strategy, take a few minutes to inventory what you owe. List each balance, interest rate (APR), minimum payment, and total monthly obligation.

This simple snapshot can help you:

• Identify which debts are costing you the most in interest
• See how much you’re paying each month across all accounts
• Compare whether a lower-rate loan would meaningfully reduce your costs

Knowing your numbers makes it easier to choose the right path. 

HOW DEBT CONSOLIDATION WORKS

Debt consolidation is when you take out a new loan to pay off two or more high-interest debts, like credit cards. The new loan often carries a lower interest rate, which can reduce the amount you pay over time. It also provides predictable monthly payments and a set payoff timeline, so you’ll know when the final payment will be made.

Instead of keeping up with multiple payments and due dates, you’ll have a single payment going forward. This reduces the risk of missed payments and late fees.

Locking in a fixed interest rate is another potential advantage of debt consolidation. Credit cards usually have variable rates that can rise or fall depending on market conditions. A fixed rate provides consistency when planning. 

TWO FLEXIBLE WAYS TO CONSOLIDATE DEBT

If you're looking to consolidate balances before summer, Texans offers two strong options — personal loans and home equity loans. Here’s how each loan works and when it might be the right fit. 

PERSONAL LOAN

With a personal loan, you receive a lump sum that you repay with fixed monthly payments over a set term. The funds can be used to pay off existing balances. 

As summer expenses approach — travel, home projects, camps, and events — a personal loan can be a practical way to streamline existing balances while planning for seasonal spending. Fixed payments and a defined payoff timeline provide predictability. 

Personal loans come with a fixed interest rate and don’t require collateral. Rates are often lower than credit cards, which can help reduce the amount you pay over time. 

The application process is straightforward, and many lenders offer fast decisions. There are usually no closing costs. A personal loan works well if you prefer an unsecured option with a straightforward repayment structure. 

HOME EQUITY LOAN

A home equity loan is structured like a personal loan. You borrow a lump sum and repay it with fixed monthly payments over a set term. The difference is that home equity loans are secured by your home’s equity. 

For homeowners with strong equity, refinancing high-interest balances into a home equity loan can consolidate multiple payments into one fixed-rate loan with a predictable monthly payment. 

Because the loan is secured by your home, rates are often lower than unsecured loans. The approval process is more involved, however. Your home will be appraised to confirm its value and your available equity, and the underwriting process is similar to that of a mortgage. Home equity loans also come with closing costs, which typically range from 2% to 5% of the loan amount. 

A home equity loan works best when you have sufficient equity in your home. Most lenders require that you have at least 20% equity to qualify.

MAKE THE MOST OF YOUR SUMMER BUDGET

Summer spending can be higher than in other months due to travel and activities. Here are some things you can do to plan ahead this summer: 

PUT YOUR SAVINGS TO WORK

If you’ve set aside money for travel or summer activities, consider parking it in Texans’ Two-Step Checking. You can earn a high-yield APY on balances up to $20,000* in your linked Texans Savings account.

The $15 monthly service fee is waived with qualifying direct deposits of $2,000 or more, keeping your summer savings productive. 

SKIP ATM FEES WHILE YOU’RE ON THE GO

Are you taking a road trip this summer or planning a trip abroad? Through the Allpoint and CO-OP ATM networks, members have access to more than 70,000 fee-free ATMs worldwide.

If you use an out-of-network ATM, Two-Step Checking provides up to two domestic and two international ATM fee refunds per month.* 

GET PAID EARLY

With direct deposit, Texans' checking accounts may provide access to your paycheck up to two days early. Earlier access to funds can smooth out due dates and summer expenses.  

EARN MORE WITH EVERY PURCHASE

Rewards credit cards earn points or cash back that can be redeemed for travel.  With Texans’ Premier Rewards credit card, you can earn:

• 4X points on streaming services
• 3X points on gas
• 2X points at restaurants
• 1.5X points on all other purchases1

With Texans’ Cash Rewards credit card, you’ll earn one point for every $1 you spend.1 

OPEN AN ADDITIONAL SAVINGS ACCOUNT

If you already have a Texans Savings account, opening an additional savings account can help you separate your savings goals. For example, one account for a down payment or emergency fund and another for a summer vacation. Dedicated savings buckets can make it easier to track progress and avoid dipping into funds meant for other priorities. 

TAKE CONTROL OF YOUR DEBT TODAY

Summer is more enjoyable when you're not juggling multiple high-interest payments. A personal loan or home equity loan can consolidate balances into one structured payment and create more flexibility for summer activities. Extra space in your budget allows you to enjoy vacations, local events, or time with family.  

Ready to consolidate your debt? Explore our personal and home equity loan options to find the best fit for your needs.

SEE OUR PERSONAL LOANS

SEE OUR HOME EQUITY LOANS

^* Each qualification cycle (1st of the month through last day of the month) that you have direct deposits of $2,000 or more to your Texans Two-Step Checking: (a) the monthly service fee of $15 will be waived; (b) two (2) Non-Texans ATM transaction fees of $7.50 each and two (2) International ATM transaction fees of $3.50 each incurred during the qualification cycle will be refunded to your Texans Two-Step Checking account on the first day of following month; and (c) balances on your Regular Savings account, up to $20,000, will earn the 3-month Certificate of Deposit rate. Balances over $20,000 will earn the same rate as the Regular Savings account.. Direct Deposit is defined as deposits via an Automated Clearing House (ACH) originated from another financial institution (ex. payroll, social security, incoming ACH from an external account). A direct deposit does not include peer-to-peer transfers from services such as PayPal, Zelle, Cash App, or Venmo, mobile check deposits, cash loans or deposits, and any deposit which Texans Credit Union deems to not be legitimate are not considered Direct Deposits. If you do not meet the direct deposit minimum, fees will not be waived, and balances in your Regular Savings will earn the same rate as the Regular Savings account (0.01% APY). Rates are variable and subject to change without notice. Limit one Texans Two-Step Checking account per member. Minimum balance of $1 required to open a Texans Two-Step Checking account. Minimum balance of $5 required to open a Regular Savings account, and a minimum balance of $25 is required to earn dividends. Fees may reduce earnings. A $2 paper statement fee will apply if not enrolled in e-statements with a valid email address.

¹ Point earnings are on net new purchases. "Net new purchases" are purchases of goods and services made by you or any authorized user on your account minus any returns or refunds ("other credits"), and do not include balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, money orders, any checks that access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind. Net purchases will be reduced for any returns or credits made on your Account. Additional promotional opportunities to earn greater rewards may be offered with the rewards program. The amount and availability of the promotional offer will vary as defined by the terms of the promotion. Texans does not have the ability to control how a merchant chooses to classify their business and, therefore, reserves the right to determine which purchases qualify for bonus points. For example, if your streaming service subscription is bundled with another product, membership, or service or billed by a third party (such as a digital platform or in-vehicle streaming service), your purchase may not be eligible for bonus rewards points. Cardholders must accumulate a minimum of 2500 points in order to be eligible to redeem points.