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Do you have to own a home in order to take out a debt consolidation loan?

MartinVLee3 - 2006-05-09 09:19:05 - Personal Finance

I would like to consolidate my debt and have seen information on debt consolidation loans. I do not own a home but am interested in consolidating my debt. What options do I have?

Best Answer:

Don't know what planet lika is from, but you do not need to own a home to get a consolidation loan. She's confusing it with a home equity loan. You can go to a bank or credit union and get a consolidation loan just like a personal loan. It may be difficult if you have poor credit, but it's done all the time. I did it, a few friends did it, so ignore Lika's answer. Pay attention to VaTreasures' answer! One of the biggest mistakes people make is to get a consolidation loan (or transfer balances to other cards) is to not control their credit. Too many times people consolidate, then turn around and run their now-empty cards right back up again. Now you are in twice the amount of debt, and end up filing for bankruptcy. Many thousands of people were forced into bankruptcy last year for this very reason! Credit Card Transfers and Consolidation loans were being pushed like crazy as a quick and easy way out of debt, but people didn't see the dangers! You MUST quit using credit until you have paid off your loan.

Answers:

Personally I know for a fact that you would have to own a home to qualify for a debt consolidation loan.

Your best bet is to work with your individual lenders and ask for better terms. If your credit is still good, you might qualify for an intro balance transfer offer. Use this to get rid of your highest interest loans. Make sure you do not use your new credit card for purchases, because your payments will be applied to the balance transfers and the interest charges will build up on your purchases.

Don't know what planet lika is from, but you do not need to own a home to get a consolidation loan. She's confusing it with a home equity loan. You can go to a bank or credit union and get a consolidation loan just like a personal loan. It may be difficult if you have poor credit, but it's done all the time. I did it, a few friends did it, so ignore Lika's answer. Pay attention to VaTreasures' answer! One of the biggest mistakes people make is to get a consolidation loan (or transfer balances to other cards) is to not control their credit. Too many times people consolidate, then turn around and run their now-empty cards right back up again. Now you are in twice the amount of debt, and end up filing for bankruptcy. Many thousands of people were forced into bankruptcy last year for this very reason! Credit Card Transfers and Consolidation loans were being pushed like crazy as a quick and easy way out of debt, but people didn't see the dangers! You MUST quit using credit until you have paid off your loan.