Should I pay my credit card debt?
Paying debts - but how? When good advice is dear
The most important thing about "paying debts"
The obligee can obtain an enforcement title and use it to carry out foreclosure.
It may be possible to pay off debts by making a settlement with the creditors. A debt settlement plan is recommended for this. If necessary, contact a counseling center for debt relief.
The possibility of such a rescheduling certainly exists. However, interest rates can increase payment liabilities.
What if you can't pay your debt?
Who z. B. borrowing 10 euros from a friend or buying a couch in installments in a furniture store, you run into debt. As long as the debtor can repay it, that's no problem. Difficulties can arise when a person has their Can no longer pay debts with the aid of one's own wealth and income - especially if they are permanent or is unable to do so for a long time.
If you don't pay off your debt, you can the following consequences to have:
- The creditor will usually ask you to pay at least once and give you a corresponding warning to send.
- If you fail to pay your debt despite this request, he can do his Enforce payment claim in court, e.g. B. by suing you for payment in the civil court or by initiating judicial dunning proceedings against you.
- In both cases he gets one enforcement order, either in the form of a judgment or an enforcement order. This title entitled him that foreclosure against his debtor initiate.
- If you do not repay your debts despite the judgment or enforcement order, you will have to take foreclosure measures such as one from the delivery of the enforcement order Attachment of accounts, Garnishment of wages or Garnishment calculate in your own apartment.
- In addition, a debtor can due to the enforcement order to Submission of an asset report will be prompted. In this way, the creditor learns everything about the debtor's financial situation and can decide which type of attachment promises the greatest success.
- Another danger is that of becoming believers after the 2nd unsuccessful reminder to the SCHUFA and pass on information about your payment history to the credit reporting agency. The submission of an asset report or the arrest warrant to enforce it are also deposited there.
- Like that negative entries at SCHUFA set the creditworthiness of the person concerned down, so that he may have difficulties concluding a new cell phone, rental or loan agreement.
- Sometimes there is only one left for debtors who are permanently unable to pay their debts Lifeline: the Personal bankruptcy. This procedure serves to satisfy all creditors equally. Honest debtors can receive a Debt discharge gain.
How can I pay my debts?
Often find heavily indebted people alone no way out of the debt trap and keep wondering how to pay off their debts. The first and most important step in doing this is to get the to admit one's own financial situation and to make it clear that there is insolvency or over-indebtedness.
The second step is to get yourself one overview about their Income and expenditure and prioritize which liabilities are most urgent: Here, you Always pay existence-threatening debts first should. This includes in particular Rent debt and energy debt. Then existing Maintenance obligations to be fulfilled.
Talk to your creditors and explain your economic situation to them. Suggest that they pay off the outstanding amount in installments and ask for a partial amount to be waived. For this it makes sense to have a Debt settlement plan to create, in which a fixed quota is agreed that each creditor receives. What it means is the percentage of all debts that you can repay.
Debt rescheduling: is it worth taking a loan to pay off debts?
At first glance, it seems to make sense to take out a loan to pay off all other debts. You could do that repay all liabilities with all creditors at one stroke and you would have a better overview because you only pay to one recipient.
However, this first impression is deceptive: if you pay off debts with a new loan, you are more likely to increase your liabilities. Because from now on you not only owe the outstanding money claims, but you also pay interest and possibly the commission for an (expensive) Payment protection insurance.
Usually only the banks benefit from a debt rescheduling loan. For debtors, this is at best a short-term solution, but it does not eliminate the actual problem.
Checklist: How can I pay off my debts?
If you can't pay your debt anymore, you should act immediately.
- Get one Overview of your finances. If you've lost track of things, you can ask your creditors for a current one List of claims ask. Introduce a Budget book.
- Check it: Which expenses are really necessary and which are superfluous. This allows you to set priorities and better decide where to save.
- Get in touch with your creditors in good time and inform them of your financial situation. Signal your willingness to pay.
- Get involved fixed budget for your expenses.
- Terminate unnecessary contracts, e.g. B. for the gym or newspaper subscriptions, or switch to a cheaper provider.
- Make no further debts. This makes the situation worse.
- Try your revenue to increaseby doing paid overtime or taking a part-time job. This will help you pay off your debt faster.
Who will help me pay my debts?
If you have completely lost track of things or if you do not feel comfortable taking these steps alone, you can also turn to one Debt counseling turn. This will help you to analyze your financial situation and also negotiate with your creditors. She also gives valuable tips on how you can reduce your debt or at least reduce it.
Debt counseling centers can help you though no financial support in the form of money grant. But they advise debtors comprehensively on their debt situation and work out one with them Debt settlement plan.
Should a consumer be so over-indebted that he has his Can't repay debts at all, the last option is the Personal bankruptcy, at the end of which the Debt discharge and a fresh start in a new debt-free life. Many advice centers also offer a corresponding one Bankruptcy advice at.
Another option is to use one to discharge your debt Lawyer specializing in bankruptcy law. A lawyer can also give you comprehensive advice and work out a plan with you to pay off the debt. However, his is Advice not free - in contrast to the free offers of most public or state advice centers.
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