Debt Consolidation Without a Home Loan

By: Charles Essmeier | Posted: 27th February 2007

Debt consolidation shouldn't be the first step you take when you find yourself in financial trouble; it should be one of the last, followed only by declaring bankruptcy. Although debt consolidation is marketed as a quick solution to money trouble, it carries troubles of its own, not the least of which is the temptation to accumulate more debt after your credit card balances are gone.

Debt consolidation can be difficult, particularly if you do not have a house. The easiest way to consolidate existing bills is to take out a home equity loan. They are reasonably priced when compared with other types of loans, and the interest is deductible from your taxes. If you don't have a home, how can you borrow money?

If you don't own a home, you can still find a loan to combine your bills into one manageable one. There are several options available:

A credit card loan - It's possible to borrow from a charge card card, if you have to. Many companies offer temporary, affordable loans for transfers if you open a new account and move an existing balance over from another card. This can be tricky; failing to heed the terms of service by paying late could cause your interest rate to skyrocket, which will make a bad situation worse.

An unsecured personal loan - Not likely for many debtors, but you might be able to get an unsecured loan from a bank, particularly if you can find a friend or relative who is willing to cosign the loan. Keep in mind that if you fail to pay, your cosigner will be held responsible for paying back your loan. You don't want to lose friends or relatives over a bank debt.

Consolidation company - There are professionals who can help you with your money troubles. consolidation agencies can create a management plan that will make it easier for you to pay off your obligations. They can also negotiate with your creditors to possibly waive fees and reduce interest. Debt consolidation companies are often for-profit services; you must pay them a fee to use them. On the other hand, it may be your only solution if you can't find other sources of funds.

Fixing financial trouble can be a difficult chore. There are quite a few ways to do it, and you can do so even if you do not own a house. It just takes patience and diligence.

©Copyright 2007 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing , a firm devoted to affiliate marketing, and DebtMender.net, a site about debt consolidation and credit counseling, personal bankruptcy and other financial matters. About the Author

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation, credit counseling, payday loans and personal bankruptcy and HomeEquityHelp.net, a site devoted to mortgages and home equity loans.

http://www.end-your-debt.com

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