Nobody is waiting for debts, but it can always happen that you need money urgently and not this the bank. Sometimes you just have no money and you leave some bills. Nothing wrong yet, when you can just pay off the debt and pay the bill later. But what happens when the unpaid bills pile up and it is no longer possible to pay the monthly installments of the debt?
What causes the debts?
Debts simply arise when more money goes out than it comes in. It does make a difference so that more money goes out than it comes in. This is due to the fact that you live on too large a footing, then an adjustment in your standard of living can be realized a little more simply than when there is simply not enough income to be able to pay the fixed costs. People also often get into debt because something has changed in their income or expenses. This can be due to a divorce or the death of the largest breadwinner, but also due to family expansion or the loss of a job.
What can you do yourself?
When debts become too big a problem, it is wise to get a clear picture of the financial situation. How much income is there, what is the cost of fixed costs? What debts are there and with whom are these debts incurred? How much money do you need to live on?
When you have listed this, you also know what you can pay off each month. After this, it is best to contact your creditor and explain the situation. They also benefit from being able to pay off your debt. Try to achieve a realistic monthly payment of your debts. If this is unsuccessful and you do not get a plan for yourself or it appears that the fixed costs are higher than the income, then you have a serious problem. It is then best to put yourself on the debt restructuring waiting list. Of course it is wiser to try it yourself first, so that it does not have to come to that.
If you want to be eligible for debt mediation, you must meet a number of conditions. You have to sign a debt settlement agreement and with this you also sign for a minimum amount to live on. Everything else goes to the creditors. You are also not allowed to make new debts during the debt counseling process and you have to pay the fixed costs properly on time.
When a proposal for debt restructuring is made, the creditors are proposed to pay off the debts in one go. For this money is borrowed from the credit bank. You must, of course, repay this loan. The advantage is that you only have one creditor.
If the emergency assistance via the voluntary route is unsuccessful, a legal route will be chosen. For this you have to go to court and you will be assigned an administrator all your mail will be sent and determine what amount you need to make ends meet. Try not to let it get that far.