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Debt Consolidation : Options For the Non HomeOwner

A popular debt consolidation loan for most people is one which uses the equity in your home.  Obviously, in order to take advantage of that type of loan, you must be a homeowner and must be able to access the equity.  So, what is the solution for a person who does not own a home?  Fortunately, there are also debt consolidation loan options even if you are not the owner of real property.

CREDIT CARD
It may seem like a strange choice to consider yet another credit card in order to consolidate your debt. Yet, if your existing cards are high rate cards and you can find a low rate credit card, you will have a lower payment plus be able to put more of the monthly payment toward reducing the amount of debt. 

CREDIT CARD
Credit card companies are being forced into more competition today, sometimes even sending special offers through the mail.  Occasionally a start up deal will offer zero percent interest for a six month interval or no fees for the initial transfer. 

 You should also make sure that the company doesn't raise their rates drastically after the honeymoon period.  These offers can often masquerade as junk mail, but if you can find a low rate credit card and transfer the high rate balances to the one new card, you will be far better overall.  By using this method, you've given yourself an instant debt consolidation with low interest and lots less paperwork and verification than would be required with a home equity loan

PERSONAL LOAN
For the non homeowner, a personal loan may be a good option.  Personal loan rates tend to be higher than that of low-rate credit cards or home equity loans, but if your credit will support a personal loan it makes a good debt solution.  You'll want to compare rates between various local and online banks to make sure you're getting the best possible deal. 

If you can provide loan collateral such as an automobile or expensive jewelry, you may get even better terms or lower rates.  Once you are granted the loan, you must be sure to use the proceeds for paying off the old creditors.  In this way, you will be left with only one payment at a better rate

DEBT CONSOLIDATION COMPANY
If your credit situation is weak and you probably won't be approved for another loan either personal or secured and you can't get a low rate credit card, there is yet another solution to your debt consolidation needs.   

A debt consolidation company will help you to consolidate your debt into one payment and will also help you attempt to get a lower interest rate.  This service works because you send your single payment to the debt consolidation company and they do the distribution to the various creditors.  Their monthly fee is usually minimal. 

So, although you are not a homeowner, you do have some debt consolidation choices which you can take advantage of.  Your costs may be slightly higher than those of homeowners, either in higher interest rates or additional fees, but you will still be able to consolidate your debts into one convenient monthly payment.

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