What is a payday loan consolidation

Payday loan consolidation is a combination of many payday loans and put them all into one or loan, which makes it possible to repay only one installment per month. Many people decide to take this step because they think that it will be much easier to control their expenses. In addition, along with incurring a consolidation loan, our debt repayment period is extended, hence we finally settle a lower installment than the sum of the repayments that have been previously paid. Banks offer consolidation loans for people who have debt in other banking institutions and want to combine them into one commitment. In order to apply for this type of loan, it is necessary to demonstrate the appropriate possibility to repay it within the prescribed period together with the interest charged. Therefore, only those who have creditworthiness have the chance to combine their debts.

A consolidation loan without earnings certificates – not in a bank

A consolidation loan without earnings certificates - not in a bank

To estimate the creditworthiness of a potential client, the bank must have access to certificates confirming the borrower’s income. For this purpose, he is obliged to submit to the bank’s target branch, in which he applies for consolidation of the following documents:

  • contract of employment, work or order – an account statement with transfers that confirm the amount of income (if we do not have an account in a given bank), PIT settlement for the current year and employment certificate
  • business activity – annual tax return from the Tax Office and a certificate of paying taxes and contributions in ZUS, US, KRUS; Ledger
  • pension – an account statement confirming the received benefit, the last part of the pension and its valorisation as well as the decision on granting the benefit

This is the basic set of documents required in most banking institutions. It is not possible to obtain a consolidation loan without documenting your income.