My WordPress Blog Mon, 11 Mar 2019 15:57:00 +0000 en-US hourly 1 What is and how debt consolidation works Mon, 11 Mar 2019 15:57:00 +0000

Decree Law 212 of 2011, introduced a financial service useful to avoid the over-indebtedness of households, namely the so-called debt consolidation loan .

Debt consolidation: what it is and how it works

Debt consolidation: what it is and how it works

Debt consolidation loan is a form of financing that allows all loan installments to be combined into one, smaller than the sum of all other installments, introduced in order to allow those who make use of it to be able to pay the debts with greater simplicity, delaying payments over time.

Consolidation may be required, whether the debts have been contracted with a single financial institution, or if they are loans from several different banks, with the additional possibility of receiving additional liquidity to cover unexpected expenses.

How to get a debt consolidation loan

How to get a debt consolidation loan

Obtaining a debt consolidation loan is a fairly simple operation, but you still need to meet certain requirements, for example:

  • Have an age between 18 and 75 years

  • Being in possession of a permanent employment contract

  • Having a 6-month seniority for employees and one year for self-employed

  • Have a good credit position

  • Perceive a pension

  • Be in possession of documentation related to other loans contracted 

Some banking institutions also require the signature of a contract by a third guarantor to act as guarantor.

To apply for a consolidation loan, simply select the bank or financial institution that best suits your needs, and make your request. If the answer is positive, it will be the institute chosen to pay off the previous debts.

It is important to underline, however, that only by possessing the aforementioned requirements will it be possible to obtain financing, which will not be granted in the absence of income, guarantees or if the applicant has been reported as a bad payer.

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Debt Consolidation: credit card does not become a debt trap Mon, 25 Feb 2019 12:29:55 +0000 Credit cards are a really useful invention. We know these small practical plastic cards since 1958 in the form valid until today.


However, the concept of credit card was first created in 1887, when the novelist E. Bellamor created the idea of ​​a credit card that was still made of cardboard. With each use a piece was separated. In the 1950s, credit cards were then established by the financial world as a cashless means of payment with flexible repayment option. Initially recognized by wealthy individuals at selected restaurants within an elite club, the credit card quickly became a seemingly straightforward means of payment for everyone. Meanwhile, more than 30 percent of all Germans own one or more credit cards, with an upward trend.

“Keep an eye on your expenses!” , One would call many credit card holders, because the careless handling of the real credit cards has already driven many people into the debt trap.

Thus the credit card does not become the debt trap – basic knowledge appropriate

Thus the credit card does not become the debt trap - basic knowledge appropriate

As before, four major providers are sharing the market:

– Mastercard
– Diners
– American Express

China and Japan have established their own credit card companies, but these are not significant globally and especially in Germany.

The credit cards of Mastercard and VISA are issued by the banks, even if many large retailers or service providers advertise their own credit cards. The credit cards of the online giant Amazon from VISA. The issuing of the American Express or the Diners Club card is carried out directly via the respective credit card companies.

Every credit card user should accept that a so-called debit note of the cardholder, ie the cash-free purchase or the online cash transaction, legally equates to a guilty promise: Only then will the credit card not become a debt trap. With a credit card, you can pay today in virtually all businesses, businesses, restaurants, hotels, airlines and online. VISA and Mastercard are very present and enjoy a high level of acceptance. You can use a credit card to shop for goods and services that you have to pay for later because of your creditworthiness. There are now a variety of credit card issuing companies. These cards are called co-branded credit cards, travel or entertainment credit cards. These co-branded cards offer various extras, such as bonuses, loyalty points, insurance or discounts on goods and services.

Generally, there are three different types of credit cards:

Generally, there are three different types of credit cards:

Debit card:
This is the usual giro card, with which you can buy cashless and which grants you a short-term credit with appropriate creditworthiness. The sales made with it are immediately deducted from your account: This way, you always have an overview, because no payments are collected and only debited after weeks.

Charge Card:
Here, all sales are summed up and charged to the cardholder once a month. It is the most common type of real credit card. A distinction is made between the pure charge card and the daily-charge card, which is a combination of a charge card and a standard debit card.

Credit Card:
This is a credit card with a so-called revolving credit. That is, the credit limit granted on the credit card can be repaid in flexible installments or special repayments. Regardless of the repayment of the loan, the card can also be recharged at any time, as long as repayments are made.

The correct handling of credit cards must be learned in order to avoid a debt trap

Credit cards are extremely helpful and practical in many situations, whether abroad, on assembly, on vacation or in case of unforeseen emergencies. However, the right treatment wants to be learned. Young people in particular are relatively often in debt due to an existing credit card. Most of the time, there is still no negative private credit entry, so that young people without adequate life experience can not resist the temptations and not only get one, but often several credit cards. With them acquisitions are made; last but not least, in order to keep up with friends and acquaintances in terms of status symbols. The overview of monthly expenses is quickly lost; the debt trap threatens. Young, inexperienced people lack stability and a sense of thrift, which is more pronounced in older generations.

But even business people and individuals who engage in extensive activities, sometimes lose the perspective of their transactions made by credit card sales; especially if you own more than one credit card. You can easily forget about upcoming debits or you can use several services at the same time. Enter your transactions quickly into a kind of organizer. This way, you avoid getting into the debt trap by paying via credit card. Did you know that you can cancel any expensive purchase or service in good time before the direct debit is debited?

Beware of hidden costs

Credit institutions are particularly interested in retaining customers with regular income or assets for a long time, so that if there is a threat of indebtedness, the ’emergency brake’ is not immediately drawn. So it happens that many insolvent customers slip without negative private credit entry through the system and continue to go into debt. The creditworthiness of the customer is checked by the banks when purchasing a credit card, but this type of proof is on very shaky legs. You are free to obtain any number of credit cards; Often then with the purchase of the new credit card the previous credit on the old card is replaced. As a result, the debt spiral is spiraling ever higher.

Nevertheless, they fall through the so-called scoring system of the private credit, because you have no bank has terminated the credit card account, although you have already accumulated high debts, which you then have to pay back painstakingly. If the generously offered loan is not repaid on time, up to 20 percent of borrowing costs accrue, which, depending on the loan amount, can grow to a considerable sum. But even the free credit card can become a debt trap if high fees are to be paid abroad or the partner card is chargeable. Especially the loss of the credit card abroad can cost a lot. Credit cards with annual fee offer partly much better conditions. In credit card comparison, you can always inform yourself quickly and without obligation.

Prevent debt trap: Cancel credit card account on time and re-debit

The correct handling of credit cards must be learned in order to avoid a debt trap

An option to not let the credit card become a debt trap is a debt restructuring into a installment loan. A comparison of the offers also helps to save money, since the interest rates for a installment loan are well below the high overdraft interest of the credit card. However, it is important to apply for the installment loan for rescheduling in good time before a negative private credit entry can be made.

Best Alternative: Prepaid Cards – How to avoid the debt trap via credit card

An alternative to the classic credit cards are the prepaid credit cards. Basically, they are not real credit cards, but prepaid cards, which can be charged as often as you like and are a convenient, cashless form of payment. Especially for teenagers, for online shopping, for stays abroad or for people who do not want to lose track of their finances, prepaid credit cards are a good alternative. You have the full cost control at all times. Your credit card can not become a debt trap.

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Eviction from a private flat for debts Wed, 30 Jan 2019 16:02:22 +0000 Eksmisja z mieszkania własnościowego za długi

You can be evicted from your apartment for too long. This also applies to owners of proprietary apartments. Then, we can be evicted because the bailiff takes over the apartment for debt repayment. What can we do if we are in such danger?

We are responsible for debts with our personal assets. If we have an apartment, then it is also part of this property and can be taken over by the debt collector.

It is best to avoid such a situation, i.e. when it comes to debt, we should contact the creditor and try to settle the matter amicably. Most often, there is a chance to spread the debt into even smaller installments by extending the repayment period. Then we will be able to slowly and systematically donate money and put aside the risk of seizure bailiffs.

As a debtor, you have your rights

As a debtor, you have your rights

However, when things have gone so far that we are threatened with eviction for debts from a private flat, we must remember that even as a debtor we have rights.

Pursuant to the regulations, the bailiff performing the obligation to empty the premises serving the housing needs on the basis of the enforceable title, which does not indicate the right of the debtor to social or replacement housing, must suspend this operation until the debtor will be entitled to a legal title to another premises or premises to live. So, when we have no place to move, we have no rights to social or replacement premises, we can not be evicted.

The eviction may proceed in a situation where the commune competent for the location of the premises to be emptied, at the request of the bailiff, will provide the debtor with a temporary room, provided that the debtor has the right to temporary accommodation.

If the municipality does not indicate a temporary room within 6 months, in this case the bailiff may remove the debtor to the night shelter, shelter or other establishment providing accommodation, which the municipality is obliged to indicate the premises to be emptied. When the bailiff removes the debtor to a night shelter, shelter or other establishment providing accommodation, he must notify the municipality of the need to provide the debtor with a temporary room. This can not take place from November 1 to March 31 of the following year, inclusive.

Many municipalities have difficulties with the lack of social housing, which is why evictions are most often issues that last for years. Therefore, debtors most often stay in indebted premises all the time.

Ask specialists for help

Ask specialists for help

When we are threatened with eviction from the proprietor’s premises, and we do not know what to do, it is best to go to specialists. We can approach lawyers offering their services pro publico bono or take advantage of free legal advice provided in many cities. We can also turn to organizations that deal with the help of evicted persons and those who face eviction.

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