A credit line or credit card debt costs a lot of money – here are seven tips on how to quickly get rid of debt and prevent high-interest rates. An overdrawn account or credit card debt can sometimes be difficult to repay, mainly thanks to high interest rates. So that the debts do not last for a long time and high-interest rates are avoided, here are some tips on how the overdraft or the credit card bill can be paid off.
Get professional help from credit card debt lawyer
Anyone who does not feel comfortable running a budget book or creating a plan for savings can also seek professional help. Many cities offer free debt counseling.
Also, numerous providers offer an initial consultation for free, but then charge fees. Various lawyers have specialized in debt counseling. To pay the attorney’s fees, you can apply for a so-called “permission voucher” for advice assistance at the competent district court.
The Debt Adviser helps to prepare the first overview of all debts and shows ways in which the debts can be repaid. If it is not enough to pay off the debt through savings, debt settlement or personal bankruptcy can also be considered.
Out-of-court debt settlement
If the debt counselor determines that you are over-indebted and can not repay the debt only through savings, you have two options.
The first step is out-of-court debt settlement. In this measure, all creditors are written, i.e., those to whom you owe money. The creditors are asked to reduce the installments or to partially waive the claim. If all creditors agree to the debt settlement plan, monthly payments will be adjusted accordingly, and you will have more money available for daily living. However, if even one of the creditors disagrees with the proposal, the extrajudicial debt settlement is considered failed.
Anyone who has debts is, as a rule, contractually obliged to provide a specific service to their creditor. But it does not necessarily have to be a payable amount of money. The obligations of the contracting parties are thus specified in the respective contract. For example, in the case of a purchase contract, the acquirer of the goods owes payment of the purchase price, and the transferor owes the transfer of the assets and transfer of ownership of the object.
Insolvency law in particular deals very intensively with the topic of debt. Finally, you can now conveniently order goods online or via the mail order or pay in the city with the debit or credit card. Quickly loses the overview of the balance in his account and uses – sometimes without realizing it – the credit line at the bank or even covers it. Even an accident and related costs can drive a person into financial ruin. Furthermore, it often happens that you take over the purchase of real estate or the construction of real estate financing, which is about foreclosure of the house or the condominium can lead.
Thus, if the expenses exceed the income, in the long run, you should try as a debtor to contact its creditors and possibly agree to installment payments. You can also seek debt advice and do your utmost to reduce debt and regain assets slowly. On the other hand, it is not worthwhile to pay off the already existing debts with a loan, since you only have to solve your money problem for a short time and have to pay high interest in addition to the amount owed. For example, you can ask for the housing allowance or reduce the amount of maintenance you have to pay or, if necessary, the employment agency or the social welfare office take over the rent arrears. Also, he should try to increase his income, for example, by a side job.
Private bankruptcy as a last resort
To file personal bankruptcy, a certified bankruptcy advisor must verify that the out-of-court debt settlement plan has failed. Subsequently, an application for personal insolvency is registered with the competent court. Both out-of-court debt settlement and private bankruptcy require the assistance of a professional debt advisor.
A credit line or credit card debt is usually expensive debts because banks often charge high debt interest. The repayment is not so easy because there are no fixed rates. With a lot of discipline and a budget book, savings can be found to pay off the debts. Those who are not able to progress on their own should seek the help of a professional debt counselor. As a last resort out of court settlement of debts or private bankruptcy is available.