Payday Loans Debt Consolidation

What Are The Qualifying Criteria To Consolidate Payday Loan Debt?

There are several companies out there that offer various programs to consolidate payday loan debt, but it is important to note that such programs are not available to everyone. There are certain qualifying criteria that you must meet in order to use the same. The exact criteria though do vary from one company to another. Therefore, if you are considering using this option to get out of the payday debt hell you are currently in, you must do a thorough research and comparison-shopping. First, you need to short-list some reputable companies that offer programs, where you meet the minimum eligibility requirements. Next, you must compare those programs to find out which one is the most suitable for your specific debt situation. Following is a brief rundown on five primary requirements that applies in most cases.

Certain Minimum Number Of Outstanding Payday Advances

Most companies prefer to offer services to consolidate payday loan debt to only those debtors who have a certain minimum number of outstanding payday loans in their names. Generally, you must have at least two outstanding payday accounts in your name, but depending upon the company you choose to go with, you may be required to have more outstanding accounts in your name.

Certain Minimum Amount Of Debt

It is important for you to understand that most debt consolidation companies do not offer their services for charity. It is their business. They accept only those cases, where they can expect some profit. That is the reason most of them also require you to have a certain minimum amount of debt, which is generally $1000. It means if your overall outstanding debt amount is less than one thousand dollars, you may have great difficulty in finding a company that can help you consolidate payday loan debt.

Citizenship And Residency Status

Your citizenship and residency status also matter a lot. You must be a citizen of the United States of America and must have lived at a place (city, state) for a certain minimum number of months or years. Various laws have been imposed on state and federal level to regulate payday lending. These laws often vary from one state to another. But, It is important to note that the laws of your state will be applicable for your case, not the laws of the state your lender or lenders belong to. That is the reason why most debt consolidation companies have minimum requirements for residency status, depending upon the areas they have offices in or can provide services to.

Age

In order to be eligible to consolidate payday loan debt, you must also meet the minimum age requirement. Most companies require you to be at least eighteen years of age to qualify for such programs.

Employment Status And Minimum Monthly Income Requirements

You must have a regular source of monthly income. Consolidation of payday loan debts is not a magical wand that will erase all your debts in a flash. You must understand the process – it only consolidates all your debts on more favorable terms (usually penalty charges are waived off and interest rates reduced) into a single debt, requiring you to make a single consolidated monthly payment for a certain number of months. Thus, you still have financial burden and unless you have a source of income to meet those monthly payment requirements, no company will be ready to provide you consolidation services. Most companies require you to have a stable employment record. But, some companies also allow certain exceptions. For example, if you have lost your job but are receiving a certain amount of money as part of alimony, the company may consider it as income and so you may still qualify for the consolidation services.

Overall, while you are doing your research to find out the best option to consolidate payday loan debt, you must also pay attention to which programs you qualify for and which ones you do not. It will make the process less time consuming and you will be able to make an informed decision on which program is the most suitable for your case.


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Posted in Payday Debt Services, Payday Loans Debt Consolidation | 1 Comment »

One Response to “What Are The Qualifying Criteria To Consolidate Payday Loan Debt?”

  1. kelvin says:

    An informative article on the eligibility criteria for choosing a merger plan to pay off all your existing cash loans of high rate of interest. The eligibility will vary from people to people and company to company. You should compare with all the options available in the market. Most of the service providers have fixed a minimum count of existing loans to be eligible for merger plan. You should have minimum two loans to get the plan. There is also a fixation on the amount of loans that can be merged as the companies will also offer in case the see any profitability. One basic requirement to be eligible is that you should be permanent resident of states for a particular period specified in the state laws. Your age also matters a much in being eligible, you should not be a minor at the time of making application. Beside all these requirements you should be in a regular service so that you shall be in a position to pay the re fixed monthly installment easily. You should be aware of al the formalities of repayment plan after merger of your all loans in to a big one.

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