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How can I get a Consolidation Loan without owning a house?
How can I get a consolidation loan without owning a house? I want to pay my credit cards but it is very hard to when the interests rates have sky rocketed! I the only thing I own is a 2006 Jeep. And of course credit card debt and student loans!

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I've been doing a combination of the above responses.

I've been debt snowballing for 2 years, but with my income in the past couple of years, I've spun my wheels a bit. I have a better job now, but it was still a little overwhelming.

Here's what I did:


1. Make a list of all your current credit card debt, and the APRs

2. Pick your highest APR card for your "snowball"

3. Decide how much per month you can spend total on your card payments

For example, I budgeted $600/month for credit card payments.

4. Pay the minimum balance on all your cards EXCEPT your "snowball" card.

5. Subtract the payment on each card from your budgeted amount. Pay the remainder on your snowball card.

Example: With a $600/month budget

Snowball Card = 19.00% APR

Card 1 = 15.99% APR, min payment = $30

Card 2 = 17.99% APR, min payment = $50

After paying the minimums on Card 1 and Card 2 ($80), $600 - $80 = $520 you pay on your Snowball card

Repeat each month until Snowball Card is paid. Rinse, repeat for eavery card until paid.


If your debt is overwhelming, but your credit score is decent,  you may want to look into this to save $$ on interest in the long run.

I'll use me as an example. In addition to snowballing, I opened a 0% interest for 12 month card. I transferred a chunk of my highest interest debt over, and snowballed the rest. The new account didn't affect my credit score significantly (a few points here and there - since I increased my debt to limit ratio).

I then went to Lending Club and was pre-approved for a loan at 9%-ish interest. Well gee, that's a LOT better than my 15.99%-19.99% cards! So I borrowed enough to cover my other card debt (not including the 0% interest card balance). Paid off most of my cards. I plan on snowballing the loan while making minimum payments on the 0% interest card, and switching once my 0% promo offer expires.

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FYI - I got the consolidation loan without having a shred of assets.

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You should use a peer to peer lending service like Prosper or Lending Club.

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