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.

Debt Consolidation Companies

The idea of using a debt consolidation company is good when you have accumulated a lot of debt from multiple creditors and are struggling to make payments. They help you tide over this problem and offer repayment programs mainly for unsecured loans. These companies act as intermediary between you and the creditors and work out a repayment plan for you. They make their money on a fee ranging from 9% to 12%.

It is better to approach them only for unsecured loans as placing collateral like a car or real estate could be dangerous leading to repossession, if you default.

Some suggestions on how to choose an agency:

• As with most issues related to finance, you need to do your due diligence and research companies and their offers before signing up. Many debt consolidation companies are increasingly resorting to false and malicious claims of freeing you from debt. You need to be aware and not fall prey to such agencies. Sign up only with reputed agencies and meet up with a representative to understand their thought process and how they can help you.
• Verify if the agency you have short listed has the right to operate and whether they are members of the BBB. Call the company number to see if they are available through the day. Also check if they can provide any referrals and speak to that person to ascertain the agency performance.
• Contact a reputed financial expert to take his assistance and guidance for your monetary problems. He may also put you in touch with a good agency and can work out a good deal for you.
• You can talk to your creditors yourself and work out a decreased rate of interest by yourself also. Attempt to settle the high cost ticket items and follow the descending route to settle debts. Ensure you try and clear all unsecured debt like card, medical and other personal debt as they are the high interest bearing ones and can bleed you.

The reason why APR is high for unsecured loans is because they are not backed by strong collateral and this compels the agencies to charge high rate of interest. Once you settle your unsecured loans, you can start with the secured loans. Here, since you can offer strong collateral, you can get much lower rate of interest and save money.

Getting out of debt is not difficult with some discipline and smart negotiation from you. The selection of a debt consolidation agency is an important step. If the offers are too good to be true, you need to be wary and double check.