Using a debt consolidation company is the way many people are going these days. A company contacts your debtors and gets a lower payoff amount than the total you owe to pay it off. You have to save up the money to make that payoff which can take a while. This is why debt consolidation companies tell you it will take 3-5 years to pay off all your debt, depending on how much you owe.
Renters can use the same companies as homeowners. It is not a requirement that you own a home to use their services. The rates aren't any more expensive and you aren't treated any different. If you were trying to get a securea loan it might be different since you could use your house.
Some may ask what is the process of getting a debt consolidation loan without a home. It is simply putting all your unsecured debt into one loan so you have one payment each month. Unsecured debt is any debt that you didn't have to use collateral to get the loan for, like a house or a car. Getting debt reduction assistance requires a consolidation company, usually. It is a settlement amount your creditors are willing to take for your loan to be paid off. For example if you owed $12,000, the company might be able to get the total amount down to $8,000. Because it will be marked as a settlement, have a negative effect on your credit rating. Sure, the debt will be gone but it shows you couldn't pay it all back like you promised. And these companies can charge anywhere from 3-5% of your total debt owed.se as collateral for that kind of loan. But a standard debt consolidation loan isn't governed by home ownership. A renter just has to save their money like a home owner would.
Keri Spencer
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