If you own a home, your options for becoming
debt free are numerous. In this case, you may obtain a home equity
loan, line of credit, or refinance your existing mortgage. All
three methods will provide you with the necessary funds to payoff
consumer debts, and ultimately reach your goal of becoming debt
free. Fortunately, non-homeowners also have options for reducing
and eliminating debts. Here are a few tips on ways to consolidate
debts without owning a home.
Credit Card Balance Transfers
If you do not own a home, but you have good
credit, getting a balance transfer may be an effective way to
consolidate debts. With this method, you will transfer the
balances from high interest credit cards to a low interest credit
card.
In some instances, credit card companies offer
balance transfers with six months of zero interest. Thus, every
monthly payment for six months will go towards reducing the
balance. However, if you have a skipped or late payment, the
credit card company will begin charging interest before the
introductory period has expired.
Personal Debt Consolidation Loans from
Credit Unions and Banks
Individuals with a high credit rating may be
able to obtain a personal debt consolidation loan through their
bank or credit union. Credit unions are better because they offer
lower rates. Each bank has different lending requirements. In some
cases, you may be able to obtain a no-collateral loan. This
generally requires a high credit score and income.
Debt
Consolidation Loans without Owning a Home – Ways to Become Debt Free