Posted on June 15, 2009 at 3:58 am hope you can take time to answer my questions. do debt consolidation agencies require qualifications from those who are interested to work with them? like is there are specific credit rating or amount of debt and things like that? thanks so much for your time

Posted on June 15, 2009 at 5:30 am lockstock,Kindly clarify if your question is about "qualifications for debt counseling" or "qualifications for debt consolidation," because these are two different things. Thank you. :)

Posted on June 15, 2009 at 6:14 am sorry i meant consolidation. thanks

Posted on June 15, 2009 at 6:37 am In my understanding, there isn't really a specific qualification that debt consolidation companies require from their clients. Credit score definitely would not count--I cannot imagine a debt consolidation company requiring prospective clients having a specific score.Basically there're three kinds of debt consolidation--credit counseling, debt settlement, and debt consolidation loans. I'll touch on debt settlement in particular, just to narrow things down a bit. If you're considering applying for debt settlement, it would be advisable for you to have a regular and steady income. Also some companies require at least $10,000 in unsecured debt, though some may accept lower amounts to qualify.

Posted on June 15, 2009 at 10:36 am Yes, just as Purple Cow mentioned earlier, there is a minimum debt requirement for certain debt consolidation companies. It varies from $4,000 to as much as $15,000. Consumers with lower debt amounts are typically advised to seek other alternatives.It is also imperative that the accounts that are to be settled or consolidated are behind on payment. Most companies do not allow consumers with current accounts to enroll on their programs; there is also an existing delinquency requirement for the loans. My facts may be wrong, but typically an account must have been behind for at least 30 days before it can be consolidated.

Posted on June 15, 2009 at 11:05 am Most, if not all, debt mgt companies only work with unsecured debts, or debts that do not have collateral. That means your credit cards, personal loans, etc can be consolidated. On the other hand you cannot consolidate secured debts like auto loans or mortgage.I may be wrong on this one too but typically most companies require that their clients have a steady employment--meaning he or she needs to be employed for at least 90 days within the same workplace.

Posted on June 15, 2009 at 11:33 am On the debts that can be consolidated: federal student loans cannot be consolidated along with private student loans. because these two loans have different rates from each other. A few pointers, too: if the card for example has been used quite frequently and/or it's a newly opened account, the consolidation firm may have quite the challenge, as it might not settle well.

Posted on June 15, 2009 at 11:48 am Most debt consolidation companies would also require their clients not to incur any more debts. In fact doing so may actually disqualify them from the program altogether. Also attempting to enroll an account that got behind while the program is running is a big no-no. Especially if they have the same creditor

Posted on June 15, 2009 at 12:28 pm If you are going to take out a debt consolidation loan- keep in mind that your credit may affect that process. Specifically, if your credit is poor, the interest rate on the loan they may be willing to extend to you will be higher than average.