The bills are piling up, you no longer dare to open the mail, the collection agency is on the doorstep. In short: you have debts and this results in stress and sleepless nights, because where can you turn for help?
The municipal debt assistance
Every municipality has a debt counseling organization where citizens can go for financial help when they no longer see a way out. Often there is a waiting list for this instance. When you end up in this process, we will look at what they can do for you. You have to give openness to all financial matters and they then list the debts. After deduction of the fixed costs and the costs of living, it is considered what you can pay as a monthly repayment of the debts. A payment arrangement is made with the creditors. This with mutual consent. If this fails, the court will be asked to start the legal process. In this case you will be placed under administration. An administrator opens all mail and decides for you what you spend your money on in the coming period. All debts are converted into one debt with a credit bank. A debt counseling process lasts a maximum of three years.
Living on and food bank
If the money that remains after the deduction of the fixed costs becomes too low to live on, you are eligible for the food bank. Debt counseling can also help you with this. They know exactly the amount that you can have to qualify for the food bank. Help from the food bank also lasts a maximum of three years, just as long as the debt counseling process. You cannot register with the food bank, this must be done by the RIAGG, social work or social services, refugee aid or specialist home care.
You will have to live a sober life during the debt restructuring period. You will also have to learn to come out with your money and you can use some saving tips for this. Budget guidance, also called the budget coach, can help with this. They also help you with the mapping of income and fixed costs. Arrange the administration and prepare a budget. People often drop money because they do not know that they are eligible for certain subsidies. Budget support also helps with this. If you want to find out for yourself whether you want to miss out on certain subsidies, take the test on the Right to Money site. Young people with a part-time job also often leave money behind. Don’t forget to make a tax return when you have a part-time job as a young person. In that case, you often receive a lot of euros in excess of tax paid after completing the tax return.
Psychological help with debts
Having debts is not only a financial problem, but also psychologically this can cause problems. Debts can quite devour your self-esteem. You can get into depression and cause debt for many divorces. So don’t wait too long to look for psychological help. Social work can not only help financially, but they can also provide the necessary support on a spiritual level. You often have to ask for it yourself.
Debts are not something to be ashamed of. Anyone can get into trouble due to unforeseen circumstances. If you are unable to sort things out yourself and negotiate with a creditor, it is best to seek help as quickly as possible to get back on top financially. After a few difficult years, you can get back on top and go through guiltless life again.