Consolidate Debt Information for Homeowners and Non-Homeowners

Debt situations vary from one person to another and if you are currently having financial problems, one of the options that you have is to consolidate debt. This is a viable solution for both homeowners and non-homeowners. If you own a home, you have probably accrued equity on your homes and you can use it as collateral when you get a debt consolidation loan. For those who do not have any equity on their homes, you can get lenders who are willing to provide financing based on the value of your home. For non-homeowners, you can have your monthly payments reduced by getting a third party to negotiate with your creditors to allow you to make one payment toward all the debts. This option is also available for homeowners who have not accrued equity and those who do not wish to use their home equity to consolidate debt.

Using a home equity loan is one of the best options to use if you own a home. You can also refinance your home. Refinancing allows you to combine your debts with the mortgage and this gives you enough money to pay them off. Home equity loans are available at higher interest rates compared to refinancing but they have lower origination costs.

If you are currently renting and have no home equity, you can consolidate debt by getting in touch with a professional who will approach your creditors on your behalf. Debt consolidation professionals usually have close relationships with most of the creditors therefore they are able to get you lower interest rates and monthly payments once all your debts are combined. The rates and monthly payments will be negotiated based on the income you currently make. This is a more suitable option to take if you are in debt instead of opting to file for bankruptcy.