Is There Really Such a Thing as FREE Debt Consolidation?

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Is There Really Such a Thing as FREE Debt Consolidation?


Get rid of all that debt!

We have a consumer who wants to know, “is there really such a thing as free debt consolidation”?

He has lots of equity in his home, a small mortgage and a relatively small amount of debt that he would like to consolidate with his current mortgage.

The problem is that he is being quoted fees for various things such as assessment charges to asses the value of his home, processing fees and legal fees.

He is expecting to reduce his interest charges on the credit card debt which he will with a secured low interest mortgage, but he feels that all of these fees will consume most of his reduced interest.

He is wondering if it is worth it and why he cannot obtain a free debt consolidation loan.

The reality is that unless you are bringing a lot of business to the lender or have other accounts with the financial institution, they are unlikely to waive these fees including the property assessment charges.

If this customer where to consider transferring his existing accounts or perhaps take out a larger mortgage some degree of consideration could be given towards his request of a free debt consolidation mortgage or loan.

For example, if this customer considered a larger line of credit secured by his home that he could use to consolidate his current debts and use as needed in the future, some lenders might consider his request for free debt consolidation.

He would only have to pay  the minimum payment each month which is the interest calculated. He could of course pay the entire amount off and he could also borrow up to the maximum approved any time he needed. This solution would give him a great deal of flexibility.


Get out of debt with a NON-PROFIT consolidation program!

We also calculated what his payments and total interest costs would be at various interest rates to provide him with some idea of how much money he might save.

Of course it really depends on what the final interest rate and term will be for the loan or mortgage that he selects.

Even though the debt consolidation may not be free, he will still save a substantial amount of interest if he pays the fees and pays the loan off over 5 years compared to just paying the interest charged by the credit card companies.


Home/Mortgage Loan Amount :: $45,000

Home Loan Application and Processing Speed (when do you need the funds):: I would like to resolve my financial issues as soon as possible. My next monthly payment is in 3 weeks and I would like to get it done by then.

Do you currently have a mortgage? :: yes, it is approximately 20% of the value of my home

Bank Name and Branch :: First Republic Bank, Wilshire

What City/Town, State and County do you live in? :: Santa Monica, California

Zip :: 90401

What is your employment field? :: retail

Employment Position :: Mid level manager for a major chain

When are you paid? (monthly/weekly/biweekly):: bi-weekly


Common sense debt consolidation programs that work.

Your credit rating to be – excellent, fair, or bad? :: fair

How did you find us? :: Looking for debt consolidation solutions online

How are you paid? (direct deposit/paper check):: Direct deposit

Gross Amount Per Paycheck :: $2,307

Do you agree to have this information published online, without your PRIVATE information of course? :: Sure, however please do not mention the name of the store or the location where I am working

Extra information here please (some detail):: My wife and I have racked up a total of $45000 in debt with a combination of credit cards, an unsecured line of credit and whats left of a small car loan.

Animated Gif – – Debt Consolidation

I have been looking around to assess what kind of debt consolidation solutions are available and what they would cost.

There does not seem to be any free debt consolidation solutions available and some of the charges are actually quite high.

We would like to consolidate our existing mortgage and the $45,000 into a new small mortgage that would be secured by our home.

By the time I pay for a property assessment on my house, the legal fees , processing fees etc. it is really not worth it. The money I would save by lower interest rates will all go to all of these fees.

If there is a free debt consolidation service available or even close to free, I would be very much interested in discussing the terms.

Note to Lender :: I believe our home is worth at least $700,000 and the existing mortgage is only $150,000 so there should be lots of room to add another $45,000 to it, but we need to find a solution that has low fees.

I work for a national retail chain here in the city and have a mid level management position that pays reasonably well. My credit should be pretty good, so would expect a competitive interest rate on any new mortgage.

I have never missed any payments on anything and really do not owe a lot of money compared to my income or my assets.

I just happen to think that there should be a solution that offers debt consolidation for free or nearly free. After all I am giving them my business and lenders should compete for it!