[Hypiereon]

"Depending on where you want to work" seems the safest answer. What country you want to work in will vary on their requirements; however, you will be at a disadvantage without a degree.

Nevermind all the "they'll take advantage of you" crap and just think logically about it. If they have someone applying who has a degree and you don't, you'll get passed up every time. Some schools "require" it, but if you send them a nice photo and explain your other "qualifications" whatever they might be (ie. TESL/TEFL Certificate and other teaching experience) they will probably be more flexible if they have no one else applying that meets their qualifications mandate.

Now, as for your contract, they will probably push this point to get your down on salary and other benefits. In China, I know several schools that demand a degree but have hired several foreigners who have no degree. Having a degree allows them to advertise you with one -- they probably will anyway, but having a degree speaks more to maturity and age than anything else which is what they're really after.

I think it also depends on what age group you want to teach. Go for a University and you'll probably get rejected. Offer to teach little children and no degree should be no problem at all. If, in fact you do choose to teach children, don't let them use the fact that you don't have a degree to bargain you down on salary and benefits.

Hope this helps!