How To Get Free Debt Consolidation

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.

6 thoughts on “How To Get Free Debt Consolidation”

  1. I’d humbly suggest that the object of debt consolidation should be to pay off debts sooner than otherwise. If that’s not the result, then you gotta look in the mirror and ask yourself: Are you tackling your debt challenge, or just postponing a solution?

  2. DIY is tough if your credit score is low but through persistence and patience you might find luck. Companies aren’t eager to help even though they always say they are.

  3. I used to work for a credit card collection comapny and it seemed that the people that went to a debt consolidation company usually ended up in worse shape. Sometimes the company didn’t make the payment on time and cost you more money. Research, Research, Research.

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