Free Debt Consolidation Forms

You can apply for debt consolidation online for unsecured debt related to cards, personal loans or medical bills that have piled up and is now beyond your control to make the payments.

The debt consolidation company will ask you to fill out a form that has to have the following details:

Name - Your full name as appearing in your official records
Address - Complete address as appearing in your official records
City
State
Zip code
Home Phone
Work Phone
Email Address - Ensure that you fill in the right email address which is your name, @ and the domain name.

Having completed Part 1, you have to now put in details in Part 2 of the form before you can submit the application.

In Part 2, you need to make a list of all the unsecured debt that you wish to clear through this debt consolidation program. You must include medical bills, card bills, personal debt invoices, any past utility bills and unpaid taxes in this. Make sure not to add items of secured debt like mortgage, vehicle loans, present utility bills, and law related payments like alimony. The medical bills must include details of the doctor, the hospital and the medicines prescribed.

You also need to make a list of all the creditors, the amount that is outstanding, the payment schedule, the number of months you have missed making the payment and the reason for availing the loan in the first place and keep it with you before hand. This needs to be compiled for each creditor so that you can mention it on the form.

Any fresh bills in your possession should be submitted at the end. You need to only submit the previous bills along with the application. Do not forget to put your name on any fresh submissions and submit the creditor list only once.

Having made the submission, do not seek feedback on email immediately. You need to wait for at least 24 – 48 hours for the response. Any exigency can be checked via email.

Finally, one piece of advice is that, please use this facility only if you are serious about availing such a program and are very particular of settling your debt issues. The need to be transparent and provide complete and authentic information is therefore paramount. Incomplete and incorrect information is detrimental and can be rejected.

Unsecured Debt Consolidation

The current financial crises and global meltdown has taken a heavy toll and it is a gloomy picture. The recession appears to be a long drawn one and job loss claims are on the rise every week. More and more businesses and financial institutions are declaring insolvency and seeking bailouts from the government. Many people who took mortgage loans in the boom time are now struggling to make the monthly payments due to job losses and no other source of income. They are finding it difficult to retain their house and are facing tough times. If you are one of the unlucky ones and have delayed your monthly repayment, due to the above mentioned issues or increase in the floating rate of interest, then you can adopt some measures that will enable you to keep your house and avoid foreclosure.

First and foremost, you must request your lender for some assistance to bear with you for some time, if you feel you are in danger of defaulting. Very often, people do not seek this help out of embarrassment and have to face the law with orders to foreclose.

By forewarning your lender and seeking help, you are enabling him to respond to your plea and it will be easier for him to contemplate assistance. He will be able to arrange for modification of the loan before any credit downgrade occurs and your report suffers. Seeking help in advance is far better than doing it at the 60th or 90th day when action from the law is just some days away.

There are agencies that will approach the lenders for modification of loans, if you are embarrassed to do it yourself. They do it for a fee of course. You can do a study of such agencies and discuss your expectations with them. Please ensure that you take their offer in writing and request them to give you a detailed explanation of their services. This will make sure you are able to hold them to the commitments they made while selling you the service.

If , by any chance you have delayed this action and the law is almost onto you, do not lose hope. You can still retain your house by opting for a loan modification that will enable you to foreclose. Your lender may add the outstanding amount to the loan and you must sit with him to work out an acceptable monthly payment schedule. You can ask for a fixed rate of interest.

You must recognize that it is in the interest of financial institutions to help borrowers retain their assets and hence they will be eager to assist. It is just a question of asking them at the right time and negotiating a workable option.

Tough times do demand extraordinary measures and one must take those measures to retain something that one has worked hard to acquire.

Mortgage Debt Consolidation

Carrying a debt burden is extremely worrying and cause for tension. Most of us wish to become debt free and are in a constant race to earn enough so that this is achieved. This challenge can be overcome through a financial instrument called the debt consolidation mortgage loan program. You can qualify for such a program if you own a house.

How does this work?

House owners can merge their debt burden by offering their house as collateral against which you get a lump sum amount. You can use this amount to payoff the long pending card balances, car debt, other personal debt. The moment the credit balance runs out, you need to make the monthly contribution as repayment for the loan consolidation amount.

The benefit is that the rate of interest under this arrangement is very low and many people are able to settle the loan and keep to their schedule. Normally, the tenure is spread over a period of six to sixteen years. Due to low interest rate, you tend to save on the monthly payments and depositing these savings back into repayment can enable you to settle the loan quicker.

Under the loan consolidation program, you can opt for either mortgage refinancing or opt for house equity loan. In the former, you can choose for cash-out mortgage refinance where you can refinance your house at far lower interest rates thus effectively reducing your home loan payment or opt for a cash-out refinance plan where you can borrow against the equity of the real estate you own and utilize that amount to settle the high interest debt. You must be aware though that in doing so, you will be increasing your mortgage payment.

Under the house equity loan program, you have two options – a line of credit against your home equity and simple loans given against your home.

In the first option, you can procure cash to merge your loans and settle them. The amount you get is related to the equity of the house and since this falls under the secured category, even people with weaker credit rating can get their loans sanctioned.

The second option involves the disbursement of a block amount that can be used to settle high interest cost personal and card debts. The credit line extended is of a revolving nature and needs to be settled before it spins out of control.

You can thus utilize your real estate equity to good effect by leveraging the benefit of lower interest rates to settle high interest debt and this enables you to ease your debt burden to a great extent.