According to data from the end of 2018, as many as 1.8 million people are indebted. Interestingly, in many cases people do not stop at one debt, as evidenced by the fact that citizens officially have 3 million different liabilities, the value of which is 25 billion dollars.
An important feature of debt is the fact that its value is growing rapidly due to an increase in default interest. Each person signing a loan agreement undertakes to meet certain conditions. If this does not happen, the consequences will have to be borne. You should think about whether it is worth taking loans and if it happens, then take such actions that will repay the entire debt.
Debtors with liabilities in various institutions may apply for a consolidation loan. It is used to repay all or selected liabilities, which will replace one loan. However, it requires creditworthiness and the bank allocates the entire amount to repay the borrower’s liabilities. The consolidation loan leads to a reduction in monthly liabilities by extending the repayment deadline, but it is not always the cheapest offer on the market.
Settlement or debt cancellation
Another idea on how to get out of debt, may be the desire to resolve the case amicably by sending a request to the creditor for extending the repayment period or dividing the debt into installments. If the debt was taken over by a debt collection company, then it is worth establishing contact with the negotiator, because such companies usually make debt repayment easier. In this case, you can spread the debt into installments, suspend the accrual of penalty interest, or cancel repayment of part of the debt.
Care should be taken that the creditor does not request that the debtor be entered in the economic information bureaus, which makes the debtor unreliable to financial institutions and thus may have problems with borrowing. When a creditor sells a debt to a debt collection company, you have to be harassed by the company’s representatives. That’s why it’s worth keeping in touch with the person or institution that borrowed the money.
This way of getting out of debt is to make the debtor insolvent. Debt relief is carried out, i.e. judicial cancellation of all or part of the liability. Consumer bankruptcy can be applied for by a natural person who does not run any business. It should be remembered that from now on the debtor cannot legally manage his property, not only real estate and movable property, but also remuneration for work.