Should you have multiple debts, and are striving to meet the monthly payments, then there's a big chance you will want to contemplate, now or later, a consolidation loan to become debt free.

Your next option may be a free debt consolidation loan if you have already studied your monthly expenses and can see no way to make savings, and find you have no way of earning extra money.

emptyBy free, I mean no additional charges or arrangement fee for the consolidation loan; your chances of getting an interest free consolidation loan are just about zero, unless you have a rich relative or friend. Should you go down the debt consolidation route, try to avoid any loan arrangement which involves upfront fees, or any extra fees at all for that matter. Whether that is likely will rely on where you live, but in the UK, it is not hard to get a free debt consolidation loan.

One benefit of a consolidation loan is that it does give you a chance to plan your finances in a way that could, if you're careful, make you debt free by the end of the time of the loan. By debt free, I will be realistic and mean "debt free except home mortgage", which most people have little choice about, and mortgage debt can be worthwhile financially anyway.

Of course, taking out a debt consolidation loan will not make you instantly debt free. However, it may be that such a loan will give you a chance to structure your finance plan over a 3, 5 or 7 year span. With the correct attitude and perseverance, this may be an excellent choice to improve your finances in the long term, resulting in being debt free by the end of the loan period.

The consolidation loan will reduce your monthly outgoings, thus giving you the opportunity to save. By getting into the saving habit, you will be able to set aside money to pay cash for the things you need in the future; if you are determined and disciplined, even that next car purchase can be in cash, rather than an expensive loan. The result: you become debt free.

If you cannot afford to pay cash for something, then you probably cannot really afford it all is the financial reality of a consumer. The house is the one exception where the investment potential and rent saving change the financial aspect.