Debt consolidation loans for non home owners are one way to describe an unsecured loan. An unsecured loan is one that does not have collateral. However, not all debt consolidation loans for non home owners are unsecured. There is one way you can get a secured loan as a debt consolidation loans for non home owners.
An auto loan is a secured loan. You can refinance your auto loan in order to pay your car and other debts off. With an auto loan you need to have the cars value higher than the amount left on the loan. If you do not have a loan on your vehicle you would have the entire value of the car to use to pay off other debts. The reason you might consider an auto loan for debt consolidation loans for non home owners is the savings. Any secured loan will offer better interest rates than an unsecured loan. The downside is that most vehicles depreciate as the years go by, leaving you less value in your car.
The unsecured loan for debt consolidation loans for non home owners is easier to obtain than a secured loan in some respects. Often the company expects you to have poor to bad credit. They know you are a high risk thus they will create a loan based on the amount you need it for and the monthly payments you can afford. The interest rate will then be decided based on the aforementioned information. The longer you need the loan the less the interest rate normally is with a secured loan. On an unsecured loan this could be the opposite. The company needs to ensure you will pay it back in the allotted time.
The way they do this is to make you fear the interest you are paying out. If you are paying out a high amount of interest you will be more motivated to pay the loan off in time or even early. They still make money and help you out, but you know the deal could turn on you.