Debt Consolidation Options for Non Homeowners

by HomeLoan.com

Creating a spending plan is the first step in debt consolidation.
Traditional advice is that debt consolidation is the best way to get debt under control but only for homeowners. This debt option assumes non-homeowners cannot leverage any assets to consolidate, but newer loan practices allow for non-homeowners to consolidate their debt in some situations. Find out if you are eligible for a non-homeowner debt consolidation.

Spending Plan

Though no one likes to create a budget, or spending plan, doing one is the necessary first step in debt consolidation options for non-homeowners. You must know how much money you have available each month to help you come up with a suitable repayment plan. Debt consolidation for non-homeowners often is about getting a single loan or using a debt consolidation company, which means your spending plan is a big part of the process.

Debt Consolidation Companies

Debt consolidation companies help people who are concerned about their level of debt to get back on track. If you have too much debt or are behind on the debt you have, the professionals who work on your debt will help you to work out how much you can pay each creditor and then will help you make arrangements with these creditors. Some are more flexible than others and you may need to spend time working everyone into the budget you created.

Personal Consolidation Loan

Personal consolidation loans are possible in some situations. When a non-homeowner is working with a debt consolidation company, for example, the company often will send a letter explaining the relationship. Non-homeowners can look to find lending institutions that will grant them a loan under the agreement that the money goes to the creditors or debt consolidation company. Non-homeowners also may have other assets, such as certificates of deposit or cars, that can be used as collateral against a loan.

Working With Creditors

In many cases, the best way to consolidate debt when you are not a homeowner is to work specifically with your creditors. With a good payment history, you may convince a bank to increase the amount you borrowed so that you can include more debts under that loan. Another option may be to get a new credit card with a low interest rate for balance transfers or to get a good deal from your current credit card company. These creative ways to consolidate debt may be the best choice for non-homeowners.

Warning

Debt consolidation companies have gotten a bad reputation in recent years and it's not all without reason. Many companies billing themselves as aides to consumers actually are scams requiring significant payment for their services. Look for common warning signs, such as a company demanding you include every loan in their repayment plan, regardless of whether that works for you. Also be very cautious about companies unwilling to disclose completely their fees.


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