- 1). Use a debt calculator to determine the total amount of debt you are carrying. Use your most recent statements for each debt; this will help you determine which debts you want to include on your payment plan.
- 2). Apply for a free debt consolidation loan. Select a debt consolidation lender online, or obtain a recommendation from your personal banker.
- 3). Complete your loan consolidation application. Your application will need to include all credit cards and loans you are interested in consolidating, their total balances and personal information that will be used to run a credit report.
- 4). Begin making monthly payments. Selecting a loan with a low monthly payment can save you money in the short term, but you can consolidate debt faster if you pay much more than your minimum requirements.
- 5). Stop using other credit cards. Avoid using credit cards that were not part of your debt consolidation process so that you can manage your finances better and avoid accumulating additional debt.
- 6). Create and maintain a monthly budget. Create a realistic budget that includes your debt consolidation loan payment so you can organize your finances and pay off as much as possible in a short period of time. This will reduce the accumulation of interest payments, making your overall loan consolidation as cheap as possible.
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