My WordPress Blog Thu, 21 Mar 2019 14:09:11 +0000 en-US hourly 1 How to Get Out of the Debt and Bank Debt Loop? Thu, 21 Mar 2019 14:09:11 +0000


How to get out of the debt loop, or how to get out of bank debt are questions that very often alternate on internet forums. Indebted people are looking for advice on how to get out of this situation and get rid of arrears. Nearly 90% of them see solutions in the next loan or loan, which can be repaid by banks, loan companies, debt collectors or even a debt collector. Practically no one can see the simplest and the closest solution that everyone has at their fingertips. There are several ways and ways to get out of debt. Which one is best for you depends on what kind of debt you have and what is their level.

It is very important to determine the category of debtors to determine the possibility of getting out of debt and obtaining help in this area. Maybe it does not sound nice, but it is necessary to present meaningful and, above all, real possibilities of help in getting out of debt.

The indebted can be divided into four categories and several subcategories.

1. Repaying loans in banks – in this category, two subcategories can be specified:

  • repaying loans on time,
  • having a delay in repayment.

2. Repaying loans in banks and non-bank companies – in this category it is possible to distinguish between sub-categories identical to the above, ie:

  • repaying loans and payday loans,
  • repaying the liability overdue.

3. Insolvent debtors – persons who have lost financial liquidity and do not pay their debts.

4. Having bank or non-bank debt collection or bailiff enforcement.

Who and to what extent can count on help in getting out of the debt and bank debt loop?

Persons who pay their bank liabilities in a timely manner, in which possible delays do not exceed 30 days, can benefit from consolidation and exit from bank debts. Consolidation of loans by extending the loan period may reduce the monthly load by up to 50%.

Persons with delays in repayment exceeding 30 days, unfortunately, can not benefit from consolidation of loans. There are, however, available non-bank loans available in the amount that allows consolidation of loans. Unfortunately, their cost is too large to make it reasonable to consolidate their bank liabilities. For these people, other solutions remain to be used, which you will read about later in this article.

Repayable loans in banks and non-bank lending companies can, on time, only recover from bank debt through consolidation. Unfortunately, the banks consolidate only bank liabilities and consolidation of other liabilities, in this case, non-banking, unfortunately, will not be possible.

When consolidating bank liabilities, bypassing payday loans, the issue of creditworthiness will be very important. This is important because some of the non-banking companies have begun placing information on loans in Database. If the bank granting a consolidation loan sees such an entry at Database, it will automatically deduct this credit liability (as it is not consolidated).

Unfortunately, you will have to get out of the minutes in a different way. To this end, it is worth considering using one of the offers of non-bank companies whose parameters enable consolidation. Currently, parabanks offer so-called long-term loans, which can be used for you. They are offered in the amount of up to 15 thousand, and even more for a period of up to 36 months.

Loans repaying in banks and non-bank companies, on the other hand, are in a reverse situation. In the bank they will receive a refusal to grant a loan due to untimely repayment. On the other hand, they can, although partially exit the debt loop, consolidating payday loans. This is a partial solution, however, worth considering due to the high penalty costs charged by parabanks.

Persons who have lost their financial liquidity and do not pay off their financial obligations and who already have debt collection or execution can not count on external assistance. No source of financing to help you get out of the debt loop is available to them.

How to get out of the debt and bank debt loop? Do not expect miracles and do not look for the strength of the way out

The Internet and forums are full of offers from various types of companies and debt offices, which praise their services and unearthly efficiency. You can find a good amount of advice on how to get out of debt, however, most of them are so-called word-of-mouth marketing. You will find a lot of entries “satisfied and effectively indebted” customers who, thanks to a specific company, came out of the credit loop. Remember, however, that there is such a thing as “word-of-mouth marketing”. These are entries made by the companies themselves that impersonate the alleged customers, praising their own services.

What is the effectiveness of such offices, companies and debt centers? Well, none! The operation of this type of creation is based on sending a letter to a bank or loan company with a request to reach a settlement and spread the debt into installments. Using their services, you are taking even more debt, because you have to pay a commission ranging from several dozen to several hundred zlotys (depending on the amount of debt). Do not pay for something you can do yourself. A sheet of paper and a few minutes dedicated to writing an application for settlement is not worth paying to any miracle workers.

When looking for strength, you will finally find what you are looking for. The dishonest people watch forums and what Internet users are interested in, what they ask for. If you are asking about how to get out of the debt loop, then you are looking for and you have it. A company that offers effective debt relief is opened, or rather honestly effective emptying of the debtor’s weak portfolio.

You can count? Count on yourself!

Debtors lose their time in search of “miraculous solutions”, a time that, with a moment, brings them closer to the execution of a bailiff. We are adults, so let us not believe in miracles and fairies. None of them will come, do not whisper on how to get out of debt and waving your wand will not make them disappear.

How to get out of the debt loop, when it seems that nobody and nothing will help us?

How to get out of the debt loop, when it seems that nobody and nothing will help us?

Only you can be a wizard yourself and your loved ones!

So few people come to such a simple solution or simply do not want to fall into it, going to the easy way. Commitments are easily incurred, and money is easy. Unfortunately, there is always a moment when you simply have to pay for it. At this point, it’s worth you to think about 2 solutions. First of all, it’s worth increasing your income, secondly analyzing your home budget and making savings. Unfortunately, you have to look around for an additional occupation, a full-time job, to reform the budget in a difficult period for you to get out of debt.
Even in the case of timely repayment of liabilities, whether the consolidation carried out, it is worth thinking about this solution, even to speed up the exit from debts. The labor market looks like this in our country, not differently and you can never be sure if you will have a job in a few years and you will be able to pay back the consolidation loan.

Solve your problems:

  1. Sit with your spouse or yourself and analyze the home budget, looking for what you can save and with what expenses to give up.
  2. Look for additional jobs, orders or other activities that will allow you to get additional income, thanks to which you will be able to meet the settlement agreements with financial institutions.
  3. Make arrangements with your creditors and implement them on time.
  4. Save, work, work and work again.

It’s a simple solution right? He agrees that it is hard and difficult to give up pleasure, but everyone is a blacksmith of his own fate and you have to bear the consequences of imprudent incurring excessive financial obligations.

Observing internet forums, I did not find any debtor’s entry that would ask for the possibility of finding a well-paid job to help pay off debt ! Every question about how to get out of debt concerned another loan or loan that would make it possible, that is, to go on the easy way. It is good that many of the debtors have no chance of getting another commitment, because it would be the proverbial “nail for the coffin” for most of them.

If this solution does not seem suitable for you, be prepared for further increase in debt and increase it by court costs and bailiffs’ executions. Some will say that no loans and loans have yet been sent to prison for unpaid loans. That’s right, but how much can a bailiff be avoided and allow the debt to grow indefinitely?

The final solution – declaration of consumer bankruptcy

Insolvent people who have completely lost their ability to pay their debts should consider declaring consumer bankruptcy. This requires conducting court proceedings, although it is not expensive. Thanks to bankruptcy, you can get out of the debt loop in two ways depending on the court’s decision. The court decides whether to write off the debts immediately or set a repayment plan to the debtor. Debt relief without a repayment plan can be expected by people in a difficult situation who can not afford to satisfy creditors even to the smallest extent. The repayment plan is set for debtors whose income is likely to pay off at least a small part of the debt. The repayment plan is fixed for 3 years, and the court may set at least € 50 as the monthly repayment amount. I will not write here on this topic. I refer to interested parties to the part of my blog dedicated to consumer bankruptcy.


You can write a book about how to get out of the debt loop and it is difficult to include everything in one article. This is a very broad topic due to the variety of debtors’ situations and how the debts were incurred. What a man is a different matter and situation. The result is that in principle everyone could get a different answer to the question of how to get out of debt.

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Debt rescheduling: now loans cheap re-debts – That’s how it works Mon, 11 Mar 2019 15:30:10 +0000

Are you of the opinion that your loan is far too expensive and the rescheduling would bring savings? Then it is worth to check the conditions of the current installment loan and put in the comparison with other offers!

You can use our credit comparison and make the comparison yourself at no extra cost and a great deal of time. But even the bank can identify current loan conditions and make you an offer that better fits your idea of ​​cheap credit and is optimal for debt restructuring.

Benefit from redistribution

Benefit from redistribution

If you have found a cheaper loan and are convinced at first glance, then you should then compare the total cost of both loans and calculate the cost of the duration of the term.

In addition to the actual interest, a loan includes additional fees, as well as contractual content, which must be included in the comparison. In order to make a truly effective rescheduling with the focus on saving, the new loan should best come with a fixed rate throughout the term, providing you with financial security and predictable expenses.

If the conditions are only currently favorable and changes in the interest rate have an effect on your loan, this can increase the well planned and important debt restructuring and make it accordingly unattractive.

Above all, older loans before the low interest rates can be reduced by re-debts and provide you with a basis to repay much less and not to forego benefits and special repayments or a previously agreed as a replacement.

It is best to inform the bank in writing about the planned repayment of the loan, thereby avoiding high additional costs and rescheduling them dearly. Here you check your existing contract before the actual replacement and control this primarily on fees that are not uncommon in non-flexible installment loans and can view the rescheduling from a new perspective.

Find a cheap loan to reschedule

Whether installment loan or construction loan, holiday loan or financing the car, if the interest rates are too high and the conditions are not very flexible, a loan over the long term can be a nuisance and a problem for the customer.

Find out how to apply for a cheaper loan and protect yourself from excessive interest rates and rescheduling fees by comparing the loans and gaining insight into the terms and benefits of the focused lender. Above all, you should take a look at flexibility in eradication and choose a credit model for rescheduling that will allow for annual special repayments or even deferrals at no extra cost and fees.

Even though your financial background is currently geared for repayment in monthly installments, small changes in your life may require a new solution and should be accepted by the lending bank. The rescheduling requires that you provide the current lender with an information and inform about the special payment of the balance. As a rule, the lender does not refuse, but may, for example, respond to a period of time or, in the event of immediate redemption, insist on a fee.

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Debt Consolidation Mon, 04 Mar 2019 14:52:31 +0000 article 83630 f img

It was recently reported that Quebeckers were more indebted than ever. That the excessive use of credit led to stories of horror of families suffocated by debts or on the verge of bankruptcy. Whatever the reasons that lead to these precarious situations, know that you do not have to let the ship sink! There are several financial solutions available to help you repay your debts quickly and especially to contain the haemorrhage caused by excessive interest rates.

Although no one dares to talk about it, everyone knows that bankruptcy is one of those options, although it is certainly the least envious. The consequences are heavy and can stretch over several years. We therefore propose a comparison of the different alternatives to bankruptcy, namely the consumer proposal as well as the consolidation of debts. You will be able to recognize yourself in these different scenarios, to identify your needs and will be able to seek the help of a professional to put your action plan in motion!

What is insolvency and its consequences?

Insolvency is a very simple concept that needs to be defined before going further. It is the financial statement of a person who is no longer able to pay his debts to his creditors because the value of his liabilities (debts) exceeds that of his assets.

This means that the insolvent person is no longer able to pay his bills, such as credit cards, electricity bills, mortgage payments, and pay all the charges that he has made to his creditors.

The causes of insolvency are many and may include:

-The overuse of credit

-The divorce

-Student loans

-Inadequate financial management

-The job loss

The most obvious consequence of insolvency is the inability to pay back creditors, but it is also one of the essential conditions for declaring bankruptcy or issuing a consumer proposal.

If that’s your case, read on and learn more about these two over-indebtedness remedies.

Debt consolidation, is it an option for you?

Debt consolidation, is it an option for you?

Are you in a state of panic before the countless creditors who knock on your door demanding to be reimbursed their due by imposing their excessive interest rate at the first opportunity? If you recognize yourself in such a scenario, debt consolidation might be a beneficial option for you.

Debt consolidation involves borrowing money from a financial institution to repay all debts owed to creditors. This makes it possible to have only one creditor to repay, which greatly facilitates the management of a portfolio already in distress.

Consolidation has many advantages, such as:

– A lower interest rate : Having only the bank to pay back makes the interest rate more favorable than the one you were subject to with several creditors.

– Easy payment: By consolidating debts into one payment, the portfolio becomes easy to manage.

-The credit rating: The consolidation protects your credit side, because the payment plan put in place by the bank will be established so that you are able to pay the monthly payment. This will prevent you from paying your credit cards late, which will negatively affect your rating.

Are you eligible for the consolidation loan?

As in many other situations, the bank has the last word on the granting of the consolidation loan. In this regard, many criteria are taken into consideration by financial institutions to decide whether you are eligible for the loan. Here are a few :

-Payment history: Were you able to make your payments on time in the past? Have you accumulated months late on certain credit cards? These are some of the factors that banks take into account when looking at your payment history.

-The credit report: We agree that if you are considering debt consolidation, your credit rating may not be as good as you would like. Each bank has its own standards, but the quality of your general credit file will dictate your eligibility for the loan, and in the event of your admission, the interest rate that will be attached to it.

-The salary: Whether the loan you want is guaranteed or not, the bank will inevitably look at your annual income to establish your ability to repay. The salary is all the more important if you hope to contract an unsecured loan, because the bank will have no property assigned to your obligation to ensure the payment of their debt.

-The amount of the debt: The amount of the debt may make you ineligible for the loan, but the size of this amount is also associated with your ability to repay, which it results from the amount of goods you have to provide as collateral and the annual income you receive. This means that the more assets you have, the more likely you are to receive the loan needed to consolidate your debts.

Keep in mind, however, that these criteria are not exhaustive and that anyone requesting debt consolidation has defaulted on one of the above obligations at some point in their life. This is a way for the bank to measure your ability to repay the loan.

As a result, your credit rating must maintain a certain standard in order to qualify for the loan! That’s why it’s better to meet a financial planner who can analyze your file and tell you if your rating is high enough to receive a consolidation loan.

Secured and unsecured loans, will you have to provide a security?

In many cases, yes! Depending on the precariousness of your financial situation, the bank may require you to provide one or more assets as collateral to secure the payment of their claim. For example, the equity of a house can be given as collateral during a debt consolidation.

If you do not own a home, you can provide another property as collateral, such as a motor vehicle, a boat, a recreational vehicle or other valuable property that the bank will accept as collateral.

If you have no property to give as collateral, you will receive an unsecured loan. This entails more risk for the bank, so conditions may be less advantageous.

In addition, when you benefit from a secured loan, it is important to make the payments on time and fully because collateral can be seized in the event of non-payment.

The disadvantages of debt consolidation

The disadvantages of debt consolidation

Debt consolidation does not just come with benefits. The flip side of debt consolidation is in the loan itself. Among other things, you will most likely need to provide a warranty, as previously mentioned.

Contrary to the proposal to the consumer, you will have to pay the entire debt due to creditors, which represents a financial disadvantage of size depending on the severity of your situation.

In any case, it is important to shop your loan well, because they are not all equally advantageous. In fact, consult a professional who will make sure that you have the necessary funds to pay the entire loan, that the repayment period is reasonable and that the interest rate corresponds to market standards for situations similar to yours.

At the very least, debt consolidation is an effective way to avoid bankruptcy and an alternative to the consumer proposal.

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Avoid credit errors and over-indebtedness Mon, 25 Feb 2019 12:50:08 +0000

Risk of over-indebtedness: Ready for vacation and the cash register is empty? Or the car urgently needs to go to the workshop and the account does not allow for major repairs? These are, like many others, reasons why consumers are in urgent need of a loan and unfortunately make one or the other credit error when looking for offers. The worse the credit rating, the sooner it happens that you get involved in unfavorable offers. Even in times of relatively low interest rates, one should be careful not to commit one of the errors explained below and get into over-indebtedness:

  • Bad credit rating due to negligent payment behavior
  • Over-indebtedness due to too many loans
  • Too many installment purchases
  • When choosing an appropriate loan, consumers should be careful to avoid certain mistakes. (Image: Please enable JavaScript to view this e-mail address. )

These should be paid even more attention, the higher the investment, because even the loan interest rates are still in a very low range. How can such credit mistakes be avoided, so that the next urgent purchase does not fall through negligence into the water?

Which loan is the right one?

There are a variety of types of credit, each targeted to the purpose. The terms instant loans, loans, car loans, etc. make this clear. It is obvious that when a car is bought, it is not looking for real estate financing, but a consumer credit with the purpose of buying a car. Each type of loan has different maturities, interest and principal, all of which is geared towards the object to be financed.

Regardless of which loan you want to use, it is possible to have a good credit rating. This does not only mean the general payment behavior, which is clearly shown in a report by private credit. Without an information, no bank will lend and if there are negative entries in it, it may become impossible to get a loan somewhere.

Seductive offers for consumers

The Internet makes shopping as easy as getting new money. Anyone who likes to buy the latest electrical and electronic equipment, often takes the so-called 0% financing of online shops or electronics companies, because it is more convenient to pay on installments. But these too are loans and they are registered with the private credit just like everything else. Even if such a financing method is not listed there as a “credit”, the personal score value is influenced by it. He can make sure that the next real credit problems arise.

  • Score value: It is calculated by the private credit from all available entries by a mathematical-statistical procedure. It reflects the likelihood that a loan will be serviced by the consumer, ie repaid. The higher the score, the better the creditworthiness!

Many a bargain is also happy to be paid through the account and if there is not enough money, it will be covered by a credit line. As you can see from this word, it is also a loan. Unlike other consumer loans, however, interest rates are much higher. The banks are very well paid for the quick disposal of the money, which for them means a minimization of available money. Who as a consumer once brought the account properly in the minus, that will probably not be able to compensate again so quickly.

One thing is fundamentally important: every consumer who wants to take out a loan should definitely use a reference calculator for loans. There are a lot of them on the internet and that’s a good thing. It is important to use more than one to get as broad a range as possible. This definitely does not cost anything and helps to find the next loan on favorable terms.


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Balance and write up debts up to 1,000 euros: the National Institute blocks everything Sun, 10 Feb 2019 15:24:32 +0000

Not so good news for defaulting taxpayers, because there will not be, at least for the moment and at least by National Institute, the so-called balance and write-off debts up to 1,000 euros. The institute has blocked the automatic cancellation of the mini-folders included in the period 2000-2010, introduced in the context of the fiscal Peace desired by the government.

He did so temporarily, awaiting clarification from the Ministry. This was confirmed by President National Institute Tito Boeri during the Senate hearing yesterday, 4 February 2019, during which he reiterated the problems that emerged in recent days on this issue.

Balance and write up debts up to 1,000 euros: how it works


Article 4 of the Decree Law n. 119/2018 provides for the ” write-off ” of debts for amounts up to 1,000 euros.

In particular, as specified on the Agency portal revenue – Levy is willing l ‘automatic termination (without any request by the taxpayer) of individual debts, the collection entrusted to the Agent from 1 January 2000 to 31 December 2010 of A MOUNT residual up to one thousand euro, calculated as of 24 October 2018 (date of entry into force of the decree), including capital, interest for delayed registration in the role and penalties.

Once the cancellation has been made as of December 31, 2018, the taxpayer can verify the extinction of the debt also by consulting its debit position within the reserved area.

The Decree Law specifies that the write-off of up to one thousand euros does not apply to certain types of payables relating to charges entrusted to the Collection Agent. In particular:

  • debts related to the “traditional own resources” of the European Union and to the value added tax collected on importation;
  • debts deriving from the recovery of state aid considered illegitimate by the European Union or by convictions handed down by the Court of Auditors;
  • fines, fines and pecuniary penalties as a result of criminal convictions and sentences.

Any sums paid before October 24, 2018 (date of entry into force of Decree Law No. 119/2018) remain definitively acquired, while the amounts paid after October 24 are charged in order:

  • to the residual debts eventually included in the preferential definition before the payment;
  • expired or maturing debts;

In the absence of debts, the amounts paid after October 24 will be reimbursed to the tax payer.

Balance and write up debts up to 1,000: why the National Institute block

The automatic deletion of the mini-folders for the period between January 1, 2000 and December 31, 2010 has not yet occurred for National Institute debts, as the Institute is awaiting clarification from the Ministry of Labor.

What clarifications? First of all, Boeri and National Institute want to solve this problem: the limit of 1,000 euros is to be calculated with or without the civil penalties accrued ?

Waiting for an answer, the question turned into a suspension of the automatic deletion. So the taxpayers who are at the center of the diatribe, with folders related to unpaid National Institute contributions will have to wait a little longer to know if they will be canceled ex officio.

The National Institute supports this interpretation, including the civil penalties accrued following the delivery of cargo to the collection agent and until October 24, 2018 (the date on which the standard came into force).

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