Payday Loans Debt Consolidation

Paperwork Involved In Payday Loan Consolidations

Payday loan consolidations allow you to merge all your debts in such a way that makes debt management much easier and the monthly payments become more affordable. This method thus paves the path to achieve a debt-free life, which earlier seemed to be an impossible task. Using this method, you can get your finances back on track within a reasonable time period. Besides that, it can help you protect and improve your credit ratings as well. But, this is a big decision and there are plenty of factors that you must take into account before you sign up for such programs. Following is a brief rundown on the kind of paperwork involved in the process.

Proof Of Employment

In order to qualify for the best programs of payday loan consolidations, you will have to meet certain basic qualifying criteria. For example, you will have to provide the proof of employment. You must have a regular source of income, which you can prove by providing the pay stubs for the last few months (usually 3-6 months). The stability in the employment is another crucial factor that debt consolidators usually look out for. If you have been switching form one job to another quite frequently, this will be taken as a negative sign. In such cases, your application for a consolidation program may straightaway be rejected. If you are married, you will also be required to provide the employment and income details of your spouse.

Tax Returns And Bank Statements

The companies that offer services for payday loan consolidations will also require you to submit the details of tax returns that you have filed. Besides that, you will also be asked to submit the bank statements for at least the last six months. A thorough review of all these documents will get them a better understanding about your income and your spending patterns. Besides that, they will also get an idea on how good you have been with your budget planning.

Records Of Debts That Need To Be Consolidated

Obviously, the most important piece of document that you have to submit while applying for payday loan consolidations is a detailed list of all the debts that you want to be consolidated into a single monthly payment. Different companies have different requirements in this regard. Some companies have put the debt threshold to as high as $10000. It means unless your debts amount to $10000 or above, you will not be able to qualify for their payday debt consolidation programs. But, you can also find companies that have lesser threshold, which can be as low as $4000. But if your aggregate outstanding debts amount to less than $4000, it will be very difficult for you to qualify for such programs. You can however still lookout for those companies that do not have a certain amount of threshold as such; instead, such companies consider a specific ratio of debt to income.

With the kind of paperwork needed for payday loan consolidations, you can easily realize that finding the right program and the right company is not an easy task. The process entails an in-depth research. So, roll up your sleeves and start doing that.

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