The situation of over-indebtedness is the inability of a consumer to repay his accumulating debts. Before explaining the alternatives to avoid this situation with credit redemption tips and other solutions, it would first be necessary to better understand what over-indebtedness really is.
What are the causes of over-indebtedness?
Following the succession of unpaid debts, over-indebtedness takes place. There are two main causes of over-indebtedness: the first is objective and the second is subjective. The objective cause is any abrupt change of situation outside the means of the person concerned (economic crisis, dismissal, family problems, etc.).
The second cause, the subjective cause comes from the individual concerned himself. Following uncontrolled actions by the individual, the latter is immersed in large debt (eg financial mismanagement, gambling abuse, etc.).
An alternative to avoid over-indebtedness: negotiation
Consult the creditor and negotiate with are a possible solution to avoid over-indebtedness. The creditor aware of your situation will explain the conditions of the loan and may even grant you postponements of monthly payments and reduce them.
When discussing with your creditor, the important thing is to keep calm, be concise and honest in order to obtain solutions. Expose your situation to the creditor in order to easily obtain a recovery plan to arrive at a regular payment. You could also negotiate payment terms.
Non-bank loan subscription: an imaginable solution
You can also use non-bank loans. Indeed, other alternatives such as family and / or friendly loans and pawnshops also exist. Although they still require written agreements, family and friendly loans have more flexibility. A pawnshop involves depositing your valuables with an auctioneer. This loan case allows you to get more cash quickly.
Consultation of aid associations
Another feasible solution is to turn to aid associations. For example, there are social services, social economy counselors, social workers or consumer associations that could help you reduce your expenses. They will surely help you to find adequate solutions according to your situation.
Credit redemption tips as another alternative against over-indebtedness?
Increasingly common, the purchase of credit is a solution for consumers facing over-indebtedness. In fact, the repurchase of credit consists of a grouping of loans in order to lighten its budget and to find its equilibrium.
Credit redemption councils amply favor this type of loan. However, care must be taken that the proposed new rate is lower than current rates by at least 1 percentage point. In the end, one should simply make sure to compare all available offers of credit redemption councils. Indeed, choosing the best rate is important to maximize your savings.