- 1). Find a debt consolidation calculator on a website such as SmartMoney.com and complete the worksheet. Compare the existing debt payments with the new consolidated payment to determine if the monthly amount saved justifies pursuing a loan. Print a copy of the report to give to the lender.
- 2). Gather the information your lender will need to review your loan request, including tax returns for the past two years. Fill out a personal financial statement and make a list of the creditors the lender will pay off with the loan proceeds. Make a copy of the last statement from each creditor that shows the account number and mailing address where the monthly payments are sent.
- 3). Meet with a loan officer to discuss a debt consolidation loan. Find out what interest rate and loan term the lender will give you for a personal loan or for a secured loan if you are able to provide collateral. Ask the lender if any of the credit cards that will be paid off with the loan need to be canceled as a stipulation of the approval.
- 4). Complete a loan application and give the lender copies of your financial information. Provide her with a list of bills to pay from the loan proceeds. Ask the loan officer whether she will issue a check to each creditor or deposit the funds into an account for you to use for the disbursements.
- 5). Close on the debt consolidation loan and cancel any automatic withdrawal payments to creditors. Produce any credit cards the loan officer requires you to cancel and verify that he disposes of them properly. Make a note when your first loan payment is due and set up an automatic withdrawal if the lender requires this in the loan approval.
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