How to Consolidate Debt With One Big Loan

Debt consolidation is a popular option for consumers who are saddled with unusually large amounts of debt. The usual source for this debt consolidation loan is through a home equity loan (HEL) or a home equity line of credit (HELOC). For those who do not own a home but who have a sufficient income and a great credit score, signature loans are an option. One benefit of signature loans is that your residence is not used as collateral for the loan thus you are not putting your home at risk should your financial situation change and you are rendered unable to repay the debt consolidation loan.

Instructions

1

List all of your consumer debts. On this list you will want to have the name of the creditor, the total amount due, the monthly minimum payment, your account number with the creditor as well as the payment address. Once you have listed all of your consumer debt, add together all of the balances to determine your total debt amount. If you have a car payment or student loans, you may also want to include these amounts.

2

Launch your internet browser and go to the Bankrate website. From the Bankrate homepage, click on Home Equity.

3

Choose whether you are interested in a HELOC or a home equity loan. Once you have chosen your loan product, select the line of credit amount that you are seeking. Although the amount will ultimately depend on the amount of equity that you have in your house, you should start off by selecting an amount that will cover the amount of debt that you have listed from step one.

4

Choose your state on the following screen and then click on Next. Select the city that is nearest you and click on Next.

5

Choose your FICO score from the ranges listed. If you do not know your FICO score, follow the link provided to help you determine your FICO score. Once you have selected your FICO score, click on Next.

6

Choose your Home Equity option. Bankrate.com also provides an option for a personal loan; that option can be chosen here. Click on Next once you have selected your Home Equity option.

7

Compare the rate information that was provided based on the information that you entered. To contact the lender directly, click on the telephone icon underneath the name of the lender. You will be given the phone number to the lending institution.

8

Call the lender and explain that you obtained their information from the Bankrate website and that you are interested in obtaining a home equity loan or line of credit for debt consolidation purposes. The banking representative will then walk you through the steps needed to officially apply for the loan.