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 Transfers

If 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 Banks

Individuals 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 Programs

If 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.