Debt Consolidation Questions – What You Need To Qualify For Consolidating Debts

Debt Consolidation Questions What You Need To Qualify For Consolidating Debts

Many individuals that owe inordinate sums of money to a number of lenders feel as though they are lepers that no loan agent would be willing to touch with a ten-foot pole.

While it is true that you must meet certain basic requirements to successfully apply for a consolidation loan, there is no shortage of companies willing to approve you even with a poor credit history.

Aurora Lillo Editor of the "Best Debt Consolidation Services" website -- http://www.ReputableDebtConsolidationCompanies.com -- pointed out;

"...There are 3 main qualifications that must be met in order to qualify for a streamlined loan. First, many companies require that you meet minimum unsecured debt requirements. Second, a number of agencies require that you must have proof of a steady place of employment. Third, while it is not always the case, many debt-relief programs require you to be significantly behind on payment to lenders before they will step in to the situation..."

Minimum Debt Requirement

While it may be surprising to some debtors, a large number of consolidation companies will only take cases that involve a minimum of between $2000 and $4000 owed to various lenders. The reason for this is that these agencies are essentially granting you a loan that will be repaid with interest. If your debts are to small, they are not worth the time it will take the organization to negotiate lower settlements with each of your individual lenders.

Steady Employment

In order to qualify for consolidation loans, you will need to prove that you have a steady paycheck coming in each months. The standard requirement involves showing proof of employment for at least 90 days prior to submitting your application for a streamlined loan. Steady employment suffices for most companies without the need to conduct a credit check at all. This can bring a great deal of relief to men and women who work hard but have a checkered financial past.

Significantly Lapsed Payments

"...While this is not the case with every debt-relief organization, many companies require that you fall behind on your payments noticeably before they will step in to negotiate with your creditors. One of the reasons for this is that often, much of the debt reduction that happens during settlement negotiations has to do with cutting out late fee charges that have accrued over time. Consolidation companies may not be able to negotiate substantially lower settlement with lenders that have not been charging you late fees every month. Again, it is not worth the manpower for some organizations to lend you money and negotiate your settlements if there is not a significant amount of extraneous debt involved..." added A. Lillo.

Further information about trusted and reputable companies for debt consolidation by visiting; http://www.ReputableDebtConsolidationCompanies.com

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