Debt Consolidation Loan for a Non Home Owner - What Are Your Options?
One of the most common debt consolidation options is the Home Equity Loan. But that type of loan is only available to home owners! So are there options for non home owners? Yes, and you may have more than you think. Consider:
A low-rate credit card.
Credit card companies are competing with each other more than ever these days, and that means special offers, bargains and deals for the consumer. Look around for a credit card that's offering a super low interest rate--even zero percent!--plus other perks like no fees for the first balance transfer, or a low fixed rate after six months. Check online for credit card deals, and don't forget to shuffle through your junk mail, too, since lots of credit cards solicit business through the mail. Once you find a great card, transfer your other balances to it for an instant, low-interest debt consolidation.
Personal loan.
Though the rates tend to be higher than that of Home Equity Loans or low-rate credit cards, a personal loan from a bank or credit union may be your best option for debt consolidation. Make sure you compare rates between local banks and online banks to ensure you're getting the best deal. If you're willing to secure your loan with collateral--like a vehicle or expensive piece of jewelry--you may get a lower rate or better terms. Once you have the loan, use the money to pay off your creditors. After that, you'll only need to worry about paying off your personal loan.
Debt consolidation service.
If your credit is on shaky ground and you don't think you'll be approved for either a credit card or a personal loan, you may want to consider a debt consolidation service. For a fee, they'll help you consolidate your debt into one monthly payment--and in some cases they may be able to help you get a lower interest rate, too. You'll send your monthly payment to the debt consolidation service, and they'll split it up and send the appropriate amounts to your various creditors.
Even if you don't own your own home, there are debt consolidation options available to you. You may pay a little more than a home owner--either higher interest rates or extra fees--but, in the end, you'll still get your debt consolidated into one monthly payment.
Our Recommended Debt
Consolidation Companies:
Our Recommended Debt Consolidation Companies:
Bad Credit Loan Sources
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Helpful Tips:
- Apply with more than one company to compare offers.
- Study your options before committing to a debt program.
- Cut out small luxuries to pay down debt at the beginning of your debt reduction program.
Debt consolidation companies vary in what types of consolidating solutions they offer. There are debt counseling companies, debt settlement and negotiation companies and debt management companies.
Debt Counseling - Debt counseling companies offer, usually, non-profit services to help you reduce the amount you owe on your debts. However this service may hurt your credit ranking. Talk to the company and find out if what they do will affect your credit ranking.
Debt settlement and negotiation - This is a process where a company will negotiate a lower payment or lower amount owed to the lender, on your behalf. Sometimes this can hurt your credit also. Debt settlement companies vary in their techniques. Before you choose a company, make sure you read through some reviews about that company before you start.
Debt Consolidation - Debt consolidation is where you take out a new loan in order to consolidate and pay off all existing debt. This usually lowers your overall payments and reduces the amount your paying every month. Not only does debt consolidation not hurt your credit, but it can actually help it.
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