- 1
Write Down How Much You Owe
Before you can get a debt consolidation loan you need to gather information together on all of your debts, including credit card debt, mortgages, loans, and car payments. Write down each loan amount, credit card balance, and the current interest rate for each debt. - 2
Bills
Gather information on all your monthly bills and expenses. Be realistic about where you have been spending your money. Decide what is essential and what is not. Make a commitment to stop spending money on non essential items so you will have more money to pay down debt especial credit card debt which usually has a high interest rate. - 3
Income
Gather information on your income. What is your net take home pay. Is there any way to increase your net income. Could you ask for a raise? Could you do a side job? Could you have a garage sale? Could you sell your boat or other luxury items? - 4
Make a realistic budget based on your income. Write down how much is going out for household expenses, debt service, and other items. - 5
Talk to Your Bank
Go to your local bank and do research on what type of debt consolidation loans that they offer. How much will they loan you for debt consolidation? What will be your interest rate and loan payment amount? You may also wish to speak with a financial advisor. - 6
Make a Decision
Make a decision based in all the information you have obtained about debt consolidation loans and your personal financial situation and goals. Will taking out a debt consolidation loan lower your interest rate, reduce your monthly payment, and help you get out of debt?
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