Debt Consolidation Loan Without Mortgage: Is It Possible?
Mortgage can be a great way to eliminate all the unsecured outstanding loans, but what about people who do not own a home? Well, if you are one of them, you do not need to be disappointed as there are several ways to get rid of the mounting debts through debt consolidation loan without mortgage. It is true that if you are a homeowner, your options are numerous, which may include refinancing your existing mortgage, obtaining line of credit or a home equity loan. You cannot take advantage of all these options if you do not own a home, but you can still use several other ways to consolidate your debts. Let me share with you some of these ways.
Transfer The Balances Of Credit Cards
If you are unable to qualify for a debt consolidation mortgage loan, transferring the credit card balances may be a great way to reduce the loan amount substantially. As per this method, you have to transfer the high interest credit card balances to a low interest credit card. In this high competitive market, these days, it is not very difficult to find a credit company that will readily offer you such a program. However, you must have a good credit score in order to qualify for the same. It will be very difficult for people with bad credit to transfer their high interest balances to low interest.
Personal Consolidation Loans
If credit score is a matter of concern for you, you may try availing a personal debt consolidation loan without mortgage. There are banks, credit unions, and several other financial institutions that offer plenty of such programs. However, you are recommended to go for credit unions because they usually offer a lower rate of interest. Here again, people with high credit score and good income will have multiple options to choose from. It may not bring you all the advantages of a debt consolidation mortgage refinance, but it will benefit you in its own way. People with bad or poor credit can also get a good deal if they provide some collateral. As collateral, you can even offer vehicle titles. If you cannot provide any collateral, you may try working with a credit counselor from a non-profit debt reduction company.
Non-Profit Debt Settlement Programs
Debt consolidation loan without mortgage is also available for people with bad or poor credit score. Keeping in view the increasing number of debtors, many non-profit companies have also launched several loan settlement programs. These companies work as a go-between between you and your creditors. They will convince your creditors to waive some amount of interest and penalty if any, which will eventually reduce your debts to a very low amount.
What is more, this method does not even have the risk of a second mortgage debt consolidation loan.