There are a number of ways for you to get a debt consolidation loan without owning a home. There are two main paths for you to go down when looking at how to do this–you can look into other secured loan options, or look into unsecured financing. Both of these paths will have their own advantages and disadvantages, and frame most of your borrowing experience, so they should be considered carefully.As far as looking into other secured options go, you can always offer some other form of collateral. Having collateral gives you a number of benefits. Lenders decide whether to lend to you at all, and how much of an interest rate to offer you, based on how likely it is that they will get the money they lend back. When you have collateral they have some way to recuperate their funds if you fail to repay them, so they’re more willing to lend to you, and at a more reasonable interest rate. While most banks will only accept real estate as collateral, it’s fairly common for other lenders to accept a vehicle, and you can often find those who will accept high priced collectibles or jewelry.Unsecured options have the downside of being based largely on your credit history. If your rating isn’t in great shape you’ll have a harder time finding lenders who will work with you, and your interest rate will be higher. But, if you know that going in and this is what’s available for you, you can still try and make the best of it. If there is anything you can do to improve your credit score, you should take care of that first, as any improvement will help. If you have a well paying job that you’ve had for a while this will also greatly help your situation, as it shows stability and a way to repay the loan.No matter which of these paths you decide to go down, the important thing is that you are taking control of your financial problems.
