If you have completed Step 1 and have determined you may need debt consolidation - before you speak to a debt consolidator or financial institution, you will need to gather some essential information. You have already prepared a detailed description of your financial situation in Step 1, you will also need to find out what your FICO score is, what interest rates are available to you given your current FICO score, and what debt services are available.

What is your FICO score?

Even if you have determined that you do not need debt consolidation, it is a good idea to find out what your FICO score is. FICO is a credit risk rating that tells lenders what kind of borrower you are likely to be, based on your credit history. Scores range from 300 to 850, with a score of 700 or greater considered a good one. If you don't know your FICO score it is time to find out. Ask your i Credit Solutions credit counselor for details today.
(See below for more information.)

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You can find out your FICO score through a number of agencies such as:

. Equifax Credit Information Services at 1-888-766-0008 or www.equifax.com
. Experian (formerly TRW) at 1-888-397-3742 or www.experian.com
. Trans Union LLC at 1-800-888-4213 or www.tuc.com

Reports start at just $9 and are also available online. They show detailed information including:

. personal information (including your name, current and recent addresses, your Social Security Number, your date of birth, and your current and previous employers).
. your credit history.
. the names of companies or individuals who have requested your credit report in the past two years.
. public records such as liens, bankruptcies and overdue child support.
. details on credit cards and loans opened in your name.
. a summary of your payment history. . a list of negative account items that adversely affect you.

Lenders and other service providers will request your credit history as they make decisions about extending credit. If your credit rating is low - or the information in your file is negative- it is much less likely a company will lend you money at a favorable rate.

Research Interest Rates

Do your homework before negotiating a debt consolidation loan. Check out the internet, talk to friends, family and acquaintances to see what kind of deals and rates you can expect. Financial institutions are more likely to give you a favourable rate if you are a long-time customer or if you offer to transfer all of your banking to their institution. Check out the online options available - many people are moving to the internet as a source of financial help.

Explore the services and available options.

The internet is a wonderful place to explore debt consolidation options. Check out the websites of financial institutions, debt counseling services, money advise sites and debt consolidator sites. Make a short list of who you want to contact. Be careful to apply to these agencies within as short a time as possible to minimize the impact of so many inquiries on your credit rating. As you deal with each of the services, present your situation as clearly and as honestly as possible - they can do their best job for you, if you are straight with them. Keep careful notes of the services and interest rates offered. We have prepared a list of questions you might consider asking.
Click here for more details on how to find the right debt consolidator.

Once you have spoken to the companies on your short list, double check them on the internet and then choose the company that best addresses your needs.