In the era of consumerism, lack of money does not have to be a problem. The availability of loans and credits for any purpose is huge. And not just when we suddenly need an extra injection of cash. Thanks to social media and effective marketing, the proposals to take advantageous loans are offered to clients at every step. Easy availability of credit, where the verification of creditworthiness is minimal or there are no requirements as to how to provide them, makes them more and more willing to use them. Unfortunately, many times the debt incurred turns out to be difficult to pay off. Too high loan installments, unpredictable random situations, financial problems, attempts to pay off debts with another loan, can make us fall into huge debts, which over time become unpaid.
In a situation when we reach the point when debt in our eyes becomes unpaid, one should not avoid the problem. The worst possible solution is surrendering and stop paying back the arrears. Avoiding calls from debt collection agencies and calls for payment can only be effective for a while. In this way, we will not avoid the consequences. The matter will soon go to the court and to the bailiff. This, in turn, is associated with court fees and bailiffs, which additionally burden us. In this way, our debt will grow very fast, which will only worsen our financial situation.
In a situation when the debt collection company takes over the debt collection company, it is worth undertaking an attempt at a dialogue. Debt collection agencies have detailed information on the title of the debt and its amount. So let’s just talk to a representative what can result in finding a way to solve a difficult situation. A debt collection company can help in debt repayment, among others, by spreading the debt into smaller installments, extending its repayment time slightly or discontinuing interest on late repayment of installments. There may also be situations when the company resigns from the recovery of part of the debt, so it is worth undertaking an attempt at dialogue and negotiations.
Also in a situation when the issue of debt goes to court and bailiff it is worth looking for a solution to a difficult financial situation. There is a possibility to submit an application for the mediator in the court. The mediator can help the parties to the conflict, and thus the debtor and the creditor, find an effective debt repayment solution. However, if the debt is taken over by the bailiff, the debt collection agency should be contacted immediately. Debtor as a creditor has the opportunity to submit an application to suspend bailiffs’ execution. The condition for this is to make a declaration on due repayment of debt.
A frequent solution for debts becomes a new loan to repay the previous one. Easy access to all types of loans results in debtors holding up to a dozen or so credits from various titles. It is a solution that gives the illusion of leaving a difficult situation. Unfortunately, in this way, our debt is rising. A so-called debt spiral is created, which is very difficult to break. Therefore, it should not be continued under any circumstances. The solution in this situation may be a consolidation loan. I am interested in the topic, can the bailiff take a wife’s account for the husband’s debts?
The consolidation loan allows you to combine all the liabilities incurred into one. The bank granting the consolidation loan takes over all our existing loans, sums up their common value, and then proposes interest rates and installments that are adjusted to our financial situation. Our creditworthiness is also assessed. This solution is beneficial for people with high indebtedness who have fallen into a spiral of debt. Despite the high level of indebtedness, there is a good chance that the bank will consider the loan consolidation application positively. Then, a common, lower interest rate on credits will be calculated. Its amount will depend, however, on the type of debts and the repayment period. Usually, the bank offers a much longer time to settle the debt. In this way, it is possible to slow down, but to effectively recover from debt. It should be remembered that a consolidation loan is not contrary to appearances cheaper loans, because despite the lower amount of installments, the repayment period is extended.
Being in a difficult financial situation, the lack of a permanent source of income will only make the situation worse. The above-mentioned ways to get out of a huge amount of debts will only be effective if we provide ourselves with an inflow of funds. It’s worth taking a look at a well-paid job. Additional work should also be considered outside full-time regular work. In a situation where we have such an opportunity it is worth going abroad for a while, thanks to which we will get a higher income. A permanent source of income will allow not only to stabilize the monthly budget, but also for regular repayment of obligations.