Debt Consolidation Non Home Loan Options

Non homeowner or no equity available in your home? Debt consolidation non home loan options do exist. There are actually several options available depending on the type of debt you are consolidating and your credit rating.

A quick side not before we get into the other options. When people approach me about debt consolidation, one of the first things I ask them is if they have student loans and if they do, if they have consolidated them. The reason is that for most people this is something that should be done first if consolidation of debt is necessary. Also this is fairly easy to do, therefore if you have student loans and have not consolidated them, see student loan consolidation for additional details.

One thing to think about when consolidating debt is if you are consolidation unsecured debt such as credit cards or secured debt such as a car loan. Many people suggest that consolidating unsecured debt into secured debt is a bad idea. The reason for this is that if you convert unsecured debt to secured debt and cannot make the payments you lose whatever you placed as collateral to secure the debt. Where with unsecured debt, you may end up with a collection agency contacting you but will not lose your belongings.

There are several unsecured debt consolidation options that may be available to you. One is a website called Prosper, this site is a Person to Person lending site that works well for debt consolidations under 25K. Another is personal loan from a credit union or bank, normally these loans will normally not be for more than a few thousand dollars unless you have a very good credit rating. Credit unions often offer lower rates, therefore make sure to consider them. And another option is to use credit cards, ideally focusing on special balance offers and paying them off before the offer expires. For additional information on credit card consolidation, see Credit Card Consolidation Step By Step or Credit Card Consolidation.

Secured loans, where you use something of value as collateral, are easier to obtain than unsecured loans, especially if you have a lower credit score. Therefore there are still options for those looking for debt consolidation loan non homeowner options. You can use other things as collateral such as land, bonds, a boat, motorcycle, car, or whatever else you have of value. A few years ago a family member was looking for Debt consolidation non home loan options and he started a successful business by taking out a secured loan on a car he had paid off.

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