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 TransfersIf 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 BanksIndividuals 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.If you do not have good credit, a credit union or bank may approve your
loan request if you have collateral. Collateral includes any piece of
property of adequate value. In some instances, applicants offer
financial institutions vehicle titles.Non-Profit Consumer Debt Management ProgramsIf you have exhausted all options for consolidating your debts, contact
a non-profit debt management service. Some consumers attempt to
negotiate better rates with their creditors. Unfortunately, many do not
receive favorable results. Debt management programs can successfully convince
creditors to waive late fees, reduce interest, etc. Because these programs are reputable, and the representatives have clout, creditors are
more apt to accept negotiated terms.