Getting a Debt Consolidation Loan Without Owning a Home

It is entirely possible to get approval for debt consolidation without owning a home. There are many organizations and lending offices that offer debt consolidation to people who are not homeowners, although it is true that you might get a better interest rate if you are a homeowner. Here are some tips for debt consolidation approval:

Shop Around Until You Find the Lowest Cost Consolidation Plan

You should never settle for the first organization or lender who grants you approval for debt consolidation. First, you need to find out how much interest and fees they are planning to charge you for consolidating your debt. Compare this amount with a few other rates from different places and be sure to factor in the duration of your repayment plan. Go with the company that is offering you the best deal on a low cost personal loan.

Check All Lenders or Organizations Out with the BBB

If you aren’t attempting to get debt consolidation through a trusted local bank, you should look up potential companies with the Better Business Bureau (BBB). There are many non-profit organizations that offer debt consolidation, and you may be tempted to believe they are trustworthy because they claim to be non-profit. Some of these organizations are known for ripping people off, so do your homework first. You should also be especially careful when dealing with any companies offering online signature loans for debt.

Consider Other Options

If you can’t seem to get debt consolidation without owning a home, keep in mind there are other options. See if you can get approved for a credit card with a high credit limit and low interest rate, and transfer as much of your debt as possible to it. You might be able to get a lower payment this way than if you used traditional consolidation methods. Try to pay a little more than the minimum on the card you’re using because according to MSN Money, paying more than the minimum can knock out interest faster and help your credit. Payday debt consolidation is another option, but interest rates will be high with this method.