Help getting out of payday loan debt -The advantages of debt consolidation

Are loans for consolidation of debts to protesters and bad payers possible? To avoid household over-indebtedness, a financial instrument known as debt consolidation has been introduced by the Italian State for some years now, which makes it possible to simplify the life of the debtor, preventing it from getting lost among too many bills and loans to be repaid all together, arriving at don’t make it later this month. But when you are protested and bad payers, as is known, access to credit is restricted due to negative reports in the appropriate registers consulted by banks and financial institutions, so it becomes more complicated to access this type of loan: fortunately there are several credit institutions that provide debt consolidation to protestors and bad payers thanks to the salary assignment, so that at least those with a paycheck or a social security check can access this financial product, having a bank the certainty of a direct deduction on salary or retirement. Let’s see in detail what is debt consolidation and how it works, investigating specifically the version for the reported end-to-end knowledge companies or the Register of Protests.

The advantages of debt consolidation

What is debt consolidation

Debt consolidation was introduced by Italian law in order to avoid excessive indebtedness on the part of Italian families due to the economic crisis, presenting itself as a particular type of financing: in fact, through debt consolidation, a user it can combine all the loans in progress into a single installment to be paid to the company that delivers this product, with a lower monthly amount and longer payback times, making the overall repayment more sustainable.

Loans for consolidation of debts to protesters and bad payers envisage the repayment method, not the classic bulletins but the assignment of the fifth, or a direct withholding of the repayment installment on salary or social security check, for a maximum amount of the installment that cannot exceed one-fifth of the total revenue received.

There are several advantages to consolidating debts, which we would like to briefly illustrate in order to understand the convenience of this product, where it could also be provided to protesters or bad payers:

  • One installment for all funding
  • Longer amortization period
  • Installment amount lower than the sum thereof
  • The possibility of obtaining additional liquidity
  • Sustainable interest rate

The consolidation of debts at can, therefore, be the ideal tool to settle the accumulated debts.

The requirements to request it

Generally speaking, the loan for debt consolidation can be requested by all natural and legal persons who already hold loans and mortgages, thus including any category of subjects who are in a sustainable or guaranteed income condition: public and private employees, pensioners, workers self-employed and freelancers. The documentation to be presented is the standard documentation required for the provision of any financing.

  • Copy of identity document
  • Tax code or health card
  • Income document
  • Any other additional documentation may be requested during the preliminary phase

But at least in theory, one of the determining factors for the approval of the loan application is that the applicant does not have to report against him as a bad payer. Let’s talk about theory because then on the market there are credit institutions and financial companies that allow the disbursement of loan consolidation debts to bad payers and protested by the assignment of the fifth: they are not very many, but it is worth to request it if you are an employee or a pensioner to simplify his debt position.

How to get debt consolidation from self?

How to get debt consolidation from self?

As we have seen, the debt consolidation loan to be granted must present some factors that do not affect the amortization of the loan: the ratio between the applicant’s income and the installment must be sustainable, and there must be no reports as a bad payer, to quote the conditions deemed most important by market operators. The second criterion can be circumvented by an employee or a pensioner having the guarantee of the paycheck and of the social security check to ask for a fifth of salary as a method of repayment, but how can a bad independent payer get a debt consolidation? Generally a finance company

may request the presence of a guarantor as protection against possible insolvency, however this eventuality, for those who have an income not from dependent employment, and is reported as protested or bad payer, becomes extremely difficult to put into practice, if not impossible: we can to affirm with a fair degree of certainty that a protestor or bad payer cannot access debt consolidation.

The financing contract

The financing contract

If you are able to obtain a debt consolidation loan with a salary-backed loan from protesters or bad payers, the loan agreement that you must sign must contain these distinctive elements:

  • Indicative data of the funding body
  • Amount of the loan
  • Number of installments, amount and deadlines
  • Interest rates applied (TAN and APR)
  • How the APR is calculated
  • General financial conditions (including default rate)
  • Delivery mode
  • Any guarantees required
  • Any insurance coverage

How the fifth sale request works

Therefore the consolidation of debts for protesters and bad payers can be paid only through the sale of the fifth: how does this method of repayment work from a documentary point of view? In the case of the public or private employee, from the documentation point of view nothing needs to be done, since the financial company itself informs the employer that the employee has requested the financing, there is no need for any authorization since the employer is obliged in this case to withhold the fifth transferable salary and pay it to the credit institution.

A little differently it works for the pensioner, who must bring into the branch the transferable fifth communication issued by the pension institution, or INPS: we remind that by law the pensioner who requests the assignment of the fifth, in addition to having to take out a life insurance policy to protect credit, it must receive a social security check net of the transferable portion which cannot fall below a minimum survival threshold calculated each year by the State, whose amount is just over 500 euros net monthly.

Debt consolidation with a financial institution: should debtors be notified?

Debt consolidation with a financial institution: should debtors be notified?

A question that many will certainly be asking is whether, once debt consolidation funding has been requested and obtained, it is necessary to notify the other companies with which loans or mortgages are in progress: the answer is absolutely not, think about doing all the lender through which you got the debt consolidation loan. But it is very important to provide the aforementioned credit institution with all the documents relating to the loans to be extinguished, in particular, the extinguishing statements, ie the calculations of the residual debt that must be repaid to the original creditors: these counts play a decisive role in determining the amount of the loan to be granted for consolidation.

Are interest rates cheap?

When we talk about the sustainability of debt consolidation interest rates obviously we have to take into account the previous debt situation: the TAN, the Annual Nominal Rate that identifies the interest applied to the borrowed money, and above all the APR, the Annual Global Effective Rate comprising all the expenses and costs related to financing are on average lower in normal loans, but in debt consolidation we have a sum of two or more loans, it should be remembered: moreover if we talk about loans for consolidation debts to protesters and bad payers it is plausible that it can there is a higher rate, as happens for every type of financial product reserved for this delicate category of subjects, due to the greater risk of insolvency. Anyhow it is always good to have several quotes available to compare financial rates and conditions and consider applying to the financial company that offers the most suitable financing offer for your needs.

Examples of debt consolidation

Let us now try to make a certainly non-exhaustive series of examples of debt consolidation available on the Italian financial market, bearing in mind that the figures shown are of a generic nature and that in the event of consolidation debts with the sale of the fifth for protesters and bad payers, financial rates and conditions they could change.

Onecredit debt consolidation

With more funding in progress, employees can apply for a Onecredit bad payer loan as debt consolidation, always through the sale of the fifth: the proposed product is called Credit Master Compact, through which you can request from 2,000 to 50,000 euros for a duration that varies from 36 to 120 months, again at a fixed rate for the TAN, at 10.20 percent, while the APR can reach a maximum of 12.37 percent. And so with these financial conditions, we can have for example 15,000 euros with an amortization plan in 84 months, thus having a monthly amortization rate of 253.08 euros, at a fixed rate as we said at 10.20%, while the APR in the example shown here will be at 11.13 percent.

Financialor debt consolidation

Another example of debt consolidation proposed to protesters and bad payers with the sale of the fifth are Unika, one of the possibilities of Financialor bad payers loan that provides financeable amounts from 3,000 to 30,000 euros, and amortization plans between 24 and 84 months. The maximum fixed TAN is 10.40 percent, while the maximum APR can reach 16.91 percent. For example by requesting between new capital and residual debt to be paid € 20,000 with an amortization plan in 84 months, you can repay the amount due with a monthly payment of € 323.98, with a fixed rate of 8.90 %, while the APR will be set at 9.99% including preliminary investigation fees.

Debt consolidation with Cleopar

Finally, we propose a third example of debt consolidation that should be provided without problems even to protesters and bad payers with the sale of the fifth, and it is the Cleopar Uno loan, which offers customized solutions for amounts up to 30,000 euros. We do not have more detailed information regarding interest rates, but we can for example say that from the point of view of depreciation reimbursement can be made by automatic debit in bank or postal current account, in addition to the bills to be reimbursed in the paying authorized branches, in supermarkets of large retail chains, at post offices or in all other enabled exercises.

Obviously the protesters and bad payers can request the debt consolidation exclusively with the assignment of the fifth, having to offer the guarantee of the pay slip or pension slip.


Consolidation is certainly a very useful tool to prevent debt situations that may lead the subject to be registered in the end-to-end knowledge company register of bad payers or to suffer a protest for unpaid checks and unenhanced bills. But what happens when you are already reported as protesters or bad payers? Access to credit inevitably becomes more complicated, but loans for consolidation of debts with the sale of salary allow us to obtain the necessary liquidity and see the time for amortization extended, thus having a more sustainable installment.

The ideal would be to manage to get rid of the records, so as to be able to access the credit with greater tranquility and ease, but unfortunately often the paradox that is recorded in the financial system is that those who would have greater need of a loaned capital fail to obtain it for lack of guarantees. Self-employed workers and self-employed professionals who normally have access to debt consolidation, unfortunately, cannot be granted financing in a reporting situation as bad payers, and to our knowledge even with the presence of a guarantor this type of financing is accepted: for these categories of subjects do not just have to try alternative ways of financing, such as loans with bills, small loans or loans with a mortgage on the house or alternative guarantee income, with all the difficulties of the case to be taken into account in obtaining a positive outcome to the request.

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