If you are looking to consolidate your debts, you may have been disheartened to see the many types of fees involved and the high cost this would add to your existing debt. However, if you look hard enough and get creative enough, there are some ways to get free debt consolidation. It just takes a little time and patience.
Do It Yourself Debt Consolidation
You first free option for debt consolidation is to try and do it yourself. You may not be able to do this based on your credit scores or other consideration, but you should give it a try.
The object of debt consolidation is to get a lower interest rate and single payment for all your debts. You could find this yourself by either: looking for a credit card that offers balance transfers and low APRs, or even looking at getting a home equity line of credit. Both of these options can offer lower rates, and you can do it yourself.
Second, you could look at getting a loan from a peer-to-peer lending site like Prosper or Lending Tree. Both of these sites offer loans from other individuals, so you can usually get a loan for just about anything, regardless of your credit score. The only risk here is that the interest rate may not be lower than your existing debt.
Using a Company
You can sometimes find companies that offer free debt consolidation loans, but you need to do your research. The companies that offer them usually service the loans themselves, and so their profit comes from the interest on the loan.
Free debt consolidation loans, however, usually require some type of collateral, so make sure that you fully understand the agreement before getting into it. You could have your house or car on the line and not even know it. Related: How to get a military debt consolidation loan.