What does overclocking means and can it be done for free?

well, overclocking is making a part of you pc run faster than its stock max speed, for example you cpu is at 3.0 ghz, so if it were overclocked it would become faster, like 3.2 ghz. it is free, you just have to change some settings IF you computer supports overclocking, which it may or may not, but i would not recommend it for you.
 
overclocking is setting higher frequency speed of your cpu than the original, overclocking can be done if your cpu multipliers are unlocked if it is that can be easily done also your motherboard has to support OC to. For overclocking on a particular cpu you can read online guides. overclocking is done by increasing either your motherboard FSB speed or increasing cpu multiplier also overclocking requires to increase voltage, that means your cpu will output more heat and if its not efficently cooled it can lead to pernament damage due to high heat output.Also it will shrink your cpu life but cpu's are rated to last about 10 years without OC so with OC it will probably still last 5-6 years.
 

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