How to Apply For Debt Consolidation Payday Loans

Debt consolidation payday loans can be a great solution for many people. The payback of a payday loan can sometimes be a long, drawn out process. Consolidating a debt is less stressful and can lower your monthly payments significantly.

You probably don’t want to lose your job, or end up on the street without the money to make that regular payment. In addition, paying a loan back on time reduces your overall credit score. By lowering your payments each month, you will increase your credit score.

Payday loans are short-term loans. They are meant to cover short-term needs. If you aren’t sure you can pay back the loan within a set amount of time, it may be best to keep it in place.


Reverse mortgage

mortgage loans

A loan that has the right terms is sometimes called a reverse mortgage. This is because the lender (the lender is typically the same entity as the borrower) invests the profits from the loan in the home. This is one of the more common ways to consolidate debt.

Debt consolidation can be a great option for many people. By working with an individual to lower the interest rate and make a budget, you can get the most affordable payment. While the monthly payments do decrease, you may be able to afford some extra.


You can also qualify for a debt consolidation payday loan

You can also qualify for a debt consolidation payday loan

It is usually a good idea to have a separate checkbook and your payday loan receipts so you can follow up if you make a mistake. Since the payday loan is set up with a very high interest rate, it would be wise to ensure you can afford the payment and the fee before taking out the loan.


Take a look at the payment options. There may be a fee for the right to use the account. In addition, some paydays may be higher than others.

If you don’t have a bank account, a cash advance company may be able to assist you. It is important to research this type of loan carefully. This is a great way to consolidate your debt, but you will need to realize the fees and other costs associated with it.

You will need to spend some time comparing the right debt consolidation loan for you. Depending on your current situation, you may qualify for a low interest loan. However, this type of loan may not be available.


Basic requirement to qualify for a debt consolidation payday loan

debt consolidation payday loan

The basic requirement is that you need proof of employment. Once you have that information, you can work with a lending institution. Be aware that it can take up to six weeks to receive approval for a loan.

It is important to put together your own budget. This will help you keep track of the cost of each monthly payment. You should also make sure you are following your budget closely.

Make sure you are taking care of any additional costs. Depending on the amount of the payday loan and the rates of interest, the payments could be high. Consolidation of debt is one way to lower your monthly payments.

Live debt free – Have finances under control

Debt is easy. Your budget is quickly overdrawn: when the next vacation is coming up or new furniture for the first apartment is purchased. Exceeding the budget in the short term is usually not a problem. However, if debt becomes permanent or gets out of control, it has negative consequences. If you want to live free of debt, you need a precise overview of your own finances and an idea of ​​which expenses fit into the budget and which do not.


Analyze your own situation

debt loans

You can get a good overview of your own finances by comparing your regular accounts with your accounts. Regular inputs are, for example, salary, maintenance, pocket money from parents or student loan. If you add up this income and subtract your regular expenses such as rent, electricity or radio fees from it, you know how high the budget you have at your disposal each month. You can easily keep an eye on your account movements via the app on your smartphone or with the online finance manager on your PC. Here, graphics also give you a quick overview of your financial situation.


Keep a clear head on high debts

debt loans

With high levels of debt, it is important not to stick your head in the sand. Even if the mountain of debt seems huge, it is not advisable to become rigid. The best way to deal with the flood of letters, claims and reminders is to sort the documents and check your own financial situation. You can use a cost statement to decide where you can save money. Because you can use the amount that is left monthly to save, pay off debts or for other expenses.


Debt counseling centers – if the insight is missing

Anyone who has lost sight of the situation and does not know whether there is something left every month or what amount of debt to pay off is best to contact a debt advice center nearby. Many non-profit associations, associations and municipal contact points offer advice to those seeking advice free of charge. On behalf of the Federal Ministry for Family, Seniors, Women and Youth, the Debt Counseling Forum maintains the official directory of all debt counseling centers in Germany. Here you can find out all about the topic and find a contact point near you.


Debt restructuring as an alternative

Debt restructuring as an alternative

If you are annoyed by many different small loans or who have been using your overdraft facility for a long time, you can inquire at your bank about cheaper alternatives. The first step towards clarification and possible debt restructuring is competent advice, which you can get from your Best Bank.

Out-of-court debt collection, without the establishment of a cause

The extrajudicial activity consists in carrying out actions that have the purpose of recovering a credit without the introduction of a court case.

To find out if you should start an out-of-court action, simply request our free CREDIT service.


Once we have examined the preliminary recovery conditions, we will be able to suggest the best strategy for your case, indicating if it is better for you to start a civil dispute or if on the contrary, you should take extrajudicial action.

We have created a very streamlined and incisive extrajudicial debt recovery process, which is divided into 3 phases:

the contact;


the closing.




The first decisive step is to establish contact with the debtor. During our experience, we have found that trying to start a negotiation with the debtor through a telephone approach can often be ineffective. During a working day, a person can receive many calls from commercial call centers that try to acquire new customers.

Over time, the erroneous belief has developed in the mind of the average citizen that even debt collection professionals use the vendor approach techniques through call centers. When the first contact is via a phone call, it is easy for a debtor to associate the activity of commercial call centers with that of debt collection consultants.

The debtor immediately becomes more suspicious and shows aggression very difficult to unhinge. In addition, the number of people answering the phone decreases more and more; individuals use their smartphones to browse social networks or to converse with already known users. In this context, it can be very complex to attract the attention of a debtor through simple telephone contact.

That is why we firmly believe that the first contact with the debtor must take place by sending a letter of formal notice. The warning has far greater persuasive efficacy than a simple phone call and also allows to give a more solemn and formal character to the recovery activity.

In the event of an out-of-court recovery, our team of lawyers will take care of sending a warning to the debtor who intimates him to pay the sum due, and who invites him to settle the dispute as soon as possible.

This contact tool is what allowed us to achieve the best results; we have ascertained that when the formal notice is sent by a law firm, the persuasive effect towards the debtor is far greater.



The negotiation is the most delicate phase of extrajudicial debt recovery and often hides many pitfalls and difficulties. To be able to obtain results in this phase it is important to know our interlocutor well; discovering the weak points of the counterparty can provide advantages during the comparison.

A debt collection professional must be perfectly familiar with both the legal instruments that protect the creditor’s interests and the guarantees that the law reserves for debtors.

Thanks to these tools it is possible to dismantle the disputes raised by the counterpart with great skill and to conduct negotiations towards the planned result. In this way, the debt collection professional guides the debtor towards the resolution of the conflict, transforming the quarrel into a constructive confrontation.

In such a delicate phase it is essential to have the right skills to reach the creditor’s interest. It has happened to us many times to transform complex negotiations into very advantageous transactions for our customers; just as we have noticed that if the negotiation is not managed by competent people, the disputes increase and the credit recovery goes away.

Before starting the negotiation, our lawyers spend a lot of time analyzing the debtor, evaluating his past behavior and the reasons that caused the insolvency. Thanks to a special system of “social media analysis” Legal Recovery studies the behavior of the debtor to find the best contact strategy.

Thanks to the experience of our senior consultants, Legal Recovery has devised an innovative dispute management system; our lawyers can count on a rich digital database that offers suggestions and “case studies” for analyzing and profiling the most frequent behaviors and exceptions. Thanks to these tools it is possible to manage the negotiations in a more profitable way and reach an agreement quickly.



The third and final phase of the extrajudicial debt recovery process is the closing or the definition of the negotiation. Once the negotiation phase is closed, our legal advisors will prepare a transaction deed which will be signed by the customer and the debtor.

During our professional experience, we have verified that defining a transaction by signing an act greatly increases the percentage of credit recovery.

In the absence of a written document, the debtor very often changes his mind and does not respect the obligations assumed during the negotiation phase; on the contrary, if the debtor formally undertakes to sign an agreement, his behavior will tend to be consistent with what was promised during the negotiation phase.

To settle the dispute with the debtor it is not enough to agree on the payment methods, but it is necessary to build an agreement that allows obtaining some advantage even in the event that the debtor does not meet the commitments.

To achieve this we will insert special clauses in the transaction deed that will allow you to further protect your credit. Thanks to these clauses we will be able to put more pressure on the debtor, using the legal instruments that the law offers to support creditors.

Otherwise, in the event that the negotiation ends with a negative outcome, and if there is no possibility of recovering your credit with legal action, we will close the extrajudicial phase by sending you a free final report in which we will declare that your credit it’s beyond reclaimed.

This document could be very useful to you; you can use the irrecoverability declaration to ” de-tax your credit” And get tax benefits that will allow you to pay less tax.

In fact, according to the provisions of the Consolidated Income Tax Act (TUIR – art. 101, paragraph 5), and as confirmed by the Inland Revenue (Circular no. 26 / E of 01.08.2016) it is possible to obtain the “deductibility of credit losses ”, whenever the taxpayer proves that the recovery activity has been unsuccessful.



The extrajudicial recovery activity is carried out only by lawyers registered in the register. We strongly believe that the recovery activity should be carried out exclusively by specialized lawyers in this sector.

Out-of-court negotiations hide many pitfalls; all the tools that can be used with the counterpart must be thoroughly understood.

Before starting any type of negotiation, Legal Recovery will study your case thoroughly to identify the debtor’s weaknesses. Our lawyers can count on numerous technological tools with which they manage litigation quickly and intuitively.

Furthermore, if the negotiation does not end with the planned result, it will be much faster to start legal action. The extrajudicial recovery activity is carried out by the same professional who will take care of initiating the court case; in this way the times for the study of the controversy are drastically reduced, speeding up the recovery activity.