Add the total amount of the bills you want to pay off. Start with the highest interest debt, as these should be paid first. If the debt consolidation loan does not cover the total amount, then pay off those with the highest interest rate first.
Check your credit score. Make sure all the information provided on your credit report is accurate. Dispute inaccurate charges by following the process outlined by the credit bureau.
Explore all your options and remember to think twice about borrowing money from a family member or friend, as the transaction may negatively impact the relationship.
Apply for a secured or unsecured loan. Avoid using your home as equity for a secured loan. Doing so will cause you to lose the property if the loan cannot be repaid. Many financial planners advise against using unsecured debt (i.e. a credit card balance) to cover a secured loans. Decide for yourself.
Research peer-to-peer lending, also known as social lending. (Peer-to-peer lending is when private parties lend and borrow money through a central website.) The interest rate you are assigned will depend on your credit score. In some cases, your loan will be funded upon approval of your application. Other websites require you to wait for an existing member to review and select your profile, before a loan can be processed. Complete a profile and explain why you are borrowing money.