To apply for a Payday loan consolidation , a number of things have to be sorted out. Papers have to be looked for together and a lot of calculations have to be done. These preparations can be time-consuming and you should not take them too lightly. Good preparation is of great importance for the success of a consolidation.
Below we list the preparations for a moment.
Overview ‘Assets and debts’
It is very important that there is a good and complete overview of all assets and debts. This is important for several reasons:
- This is important to be able to determine whether a part of the debts can still be paid from the sale of assets. This may cause the amount of the Payday loan consolidation to be lower and the possibility of actually obtaining such a loan will be increased.
- A financier can also make an estimate of the possibilities to recover (a part of) the money if the installment does not go according to plan.
- The amount of the Payday loan consolidation must be sufficient to actually pay all debts that have to be accommodated. If the total amount of debts is not correct, new arrears and debts will soon arise.
In the list of debts, a distinction must be made between urgent debts and non-urgent debts (see: ‘ If things go wrong ‘). It may be that the financier wants to limit the loan (and his risk) by financing only the urgent debts.
This overview is important to determine how much repayment capacity there is. The term ‘repayment capacity’ must be approached differently than in the case of a regular loan from a bank. On the basis of the regulations of the Netherlands Authority for the Financial Markets (AFM) and the Dutch Bank (DNB), banks use a maximum amount to be borrowed. If you stay within this limit, you can still eat out occasionally and you can go on holiday. If you need to calculate the repayment capacity for a Payday loan consolidation , you are probably already past that stage.
Unlike with normal loans at a bank, the total net annual income must be taken into account when determining the income. So including holiday allowance and any supplements (thirteenth month, profit distribution, travel allowance, etc.). In a debt situation, as much of the income as possible must be used to pay off debts.
In the list with the expenses a complete overview must be made of all expenses that have to be made during the year. Some expenses are fixed (rent / mortgage, insurance, energy, etc.) and some are very flexible (petrol, telephone costs, etc.). The latter must be properly assessed. It is better to estimate the costs too high than too low. Keeping money is beneficial to get out of trouble faster. Shortage of money makes it more difficult to meet the conditions of the loan.
Two overviews with expenses
Make two overviews with expenses. The first is without repayments and interest on existing, non-urgent loans. This can be used if the financier wants to place all loans in the Payday loan consolidation . The repayments and interest on the existing loans are then no longer important because they will be canceled with the Payday loan consolidation .
The second overview is with repayments and interest on existing, non-urgent loans. This second list can be used if only the urgent debts are included in the Payday loan consolidation . The repayment and interest on the existing loans will therefore have to be paid in addition to the repayment of the Payday loan consolidation .