Debt restructuring for the unemployed – reallocate debt and avoid bottlenecks
The number of over-indebted households increases every year. Unemployed people who suffer from the financial losses caused by unemployment are particularly at risk of falling into debt. This is not because unemployed people live above their means. No, the reason is mostly due to existing contracts that continue despite the loss of their job.
Insurance, leasing contracts, installment payments and loans – they all have to be serviced and an unemployed person who can no longer bear the running costs continues to go into debt monthly. However, there is a way out: debt restructuring.
What does debt restructuring mean?
As the term suggests, debt restructuring for the unemployed is a gradual debt reduction. As a rule, indebted people tend to accumulate different types of debt. In addition to installment loans, debts arise from contractual obligations, installment payments and much more. Initially, those affected try to reallocate funds and repeatedly serve a creditor so that he does not take legal action. But this plan rarely succeeds. Debtors now have the option of reducing debt by means of debt restructuring. However, debt restructuring has serious disadvantages. Because it is by no means a debt restructuring, but only the taking out of a new loan, with which the existing debt will be paid off.
Of course, the credit also entails costs – and how should they be borne if they at least reach the level of the previous debts? It is also difficult for indebted unemployed people to obtain a loan for debt restructuring. It makes more sense to look specifically for debt restructuring for the unemployed. Although this also replaces the individual debts, it does not constitute a loan. In addition, the provider of debt restructuring for the unemployed acts as negotiator and offers creditors a comparison. In this way it is often possible to reduce the total debt considerably and only have to settle the remaining debt.
Combine debt restructuring with debt advice
But debt restructuring for the unemployed can also be used to avert impending personal bankruptcy. If a debtor already contacts a debt counseling service, this usually leads to discussions with every creditor. As part of the talks, she is now trying to reduce the amounts outstanding and to make the other party give in. However, giving in often requires a settlement payment. It is understandable that an unemployed person who is already in debt can hardly raise them, especially since the comparative payments add up due to the mass of creditors.
If he turns to an ordinary bank, he will hardly get a loan. However, if he turns to the debt restructuring for the unemployed, he can firmly involve them in the settlement negotiations and make the settlement payment with the money made available. If you consider that the comparison payment is usually only a fraction of the original amount, this solution is more than expedient.
Approach debt restructuring correctly
It is important that the unemployed check carefully what offer to take out debt relief. There are now several providers that offer debt restructuring for the unemployed and actively support their customers. However, sufferers must be aware that they continue to have to pay installments.
Although these are no longer paid to the individual creditors in the original amount, the provider of the restructuring expects timely receipt of payment. However, the cost of debt restructuring and the monthly installments are within a very reasonable range, and those who have the choice of starting personal bankruptcy, welcoming the bailiff almost every day, or taking advantage of debt restructuring should choose the appropriate solution.
After all, debt restructuring for the unemployed helps to avert the threat of foreclosure measures, reduce the risk of affidavit and ultimately prevent negative Credit bureau entries. In addition, those affected only have to pay a single installment, which goes directly to the debt restructuring bank’s account, which keeps track of the payment obligations.