Consolidation loans for non homeowners refer to a process whereby your different debts to various establishments are rolled into one. Thus, the debt becomes more manageable and easier to pay off. Debt consolidation loans are given by Canadian financial institutions which allow their clients to make good on debts to multiple creditors by means of a single monthly payment to the respective establishment. The client usually asks the financial institution for a loan equivalent to the total sum owed to the creditors. If they are granted the loan, the bank settles all the other debts, and the client is only responsible for repaying the consolidation loan. In some cases, the interest rate on the consolidation loan is lower than that charged by the other creditors. The interest rate differs depending on the bank or financial institution.
A beneficial feature of debt consolidation loans is that the borrower arranges the monthly payments so that they fit the available budget. The debtor knows how to manage the payments, giving him peace of mind and time to resolve his money issues.
Filing for bankruptcy may be a better option if the reason you plummeted in debt (to begin with) is that you were laid off from work, quit, or were fired. It is a bad idea to get a debt consolidation loan in this case because you will have to pay it back. You will be better off declaring bankruptcy.
You do not need to own a home per se; if you own land or some other kind of property and have built up equity in it, getting a consolidation loan for non home owners may be easier. If not, an option is having someone to sign for the loan with you. This should be a person with a sound credit rating and the means to pay back the loan if you cannot.
Another option is the "Whole Life" insurance policy. This is a specific kind of life insurance that accumulates cash value over the years. This policy can serve as collateral for the debt consolidation loan. In other words, it is possible to borrow against it. If you have had it for over a decade, it has become quite an asset. Any other asset will do as well - stocks, bonds, vehicles, motorbikes, stamp collections, etc. Items for which value can be established are good for use as collateral.
As we have seen, consolidation loans for non homeowners are a possibility. However, consolidation loans do have some disadvantages. If the loan recipient keeps using credit cards and accounts that have been consolidated, he or she continues plummeting into debt. In this case, banks and financial institutions will be less lenient on missed payments than other creditors.