Debt Consolidation Solutions Without Home Equity

Debt consolidation can be hard, particularly if you don't own a house. The easiest way to combine existing bills is to apply for a home equity loan. Equity loans are inexpensive when put side by side with other varieties of loans, and the interest is deductible from Federal income tax. If you don't have a home, how can you take out a loan?

If you don't have a home, you can still find financing to consolidate your debts into one manageable one. There are a few choices available to you:

Debt consolidation agency - There are professionals who can help you with your financial troubles. Debt consolidation agencies can create a management plan that will allow you to pay down your debts. They can also negotiate with your lenders and creditors to possibly waive fees and lower interest. Debt consolidation companies are often profit-making services; you must pay them a fee to use them. On the other hand, it may be your only answer if you cannot find other sources of cash.

A personal loan - Not likely for a lot of borrowers, but you might be able to acquire an unsecured loan from a bank, particularly if you can find a friend or relative who is willing to act as a cosigner. Keep in mind that if you cannot pay, your cosigner will be legally responsible for paying back your debt. You do not want to lose friendships over a loan.

A credit card loan - You might be able to borrow from a charge card card, if you have to. Many companies offer temporary, low-interest loans for balance transfers if you apply for a new account and move an existing balance over from another card. This can lead to trouble; failing to consider the terms of service by paying late could cause your rate to skyrocket, which will make things even worse.

Fixing debt problems can be a difficult task. There are quite a few ways to do it, and it is possible to do so even if you don't have a house. It just takes a bit of effort.

Charles Essmeier is the owner of Retro Marketing , a firm devoted to affiliate marketing, and Debt-Stopper.com, a site about debt consolidation and credit reports, personal bankruptcy and other financial matters.

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