While there are a number of debt consolidation services that are happy to help you consolidate your debts into one manageable payment, many of them charge some sort of fee. With some debt consolidation agencies, this involves paying a flat fee up front for their services. Others charge a monthly fee for as long as you remain in their program. Fortunately, there are also options for free debt consolidation that may be available in your area.

One of the best places to look for free debt consolidation is through local bankers' associations and debt counseling services sponsored by the local municipality. It is not unusual for organizations of this type to offer free debt consolidation help as part of their service to the community. Depending on the severity of your situation, the free services may help you find a lender that will extend a loan to help you consolidate debt into one simple payment each month. As part of the process the free service may also help you create a workable budget to help ensure you can honor the monthly installment payment on your consolidation loan.

Citizen action groups sometimes offer free debt consolidation support as part of their financial education services to the wider community. The help consolidating debt is often extended as part of the process of aiding people who've lost jobs to get back on their feet. As with other community-based programs that aid in consolidating debt, the citizen action groups try to match candidates with lenders who are likely to issue a consolidation loan at reasonable interest rates.

Free debt consolidation may also come from a private source. It is not unusual for family members or associates to provide financial help in consolidating debts. In exchange, regular payments on the outstanding balance are scheduled and made according to the terms agreed upon by both parties. The frequency may be monthly, bi-monthly, or any other time frame that is acceptable to both lender and debtor. In some cases, the lender may choose to not impose any type of interest on the total amount of the loan. Generally, it is a good idea to create written terms and conditions that both parties agree to, as this will help minimize any confusion or misunderstanding of what was decided at the time the loan was extended.

Once obtaining free debt consolidation, it is very important to be diligent in repaying the loan according to terms. At the same time, taking steps to avoid creating new debt while paying off the consolidation loan are equally important. By making use of a free debt consolidation opportunity, you can get back on track and make plans for enjoying a solid financial and debt-free future.