Coping with debt

If you are over-indebted and are unable to cope with paying your bills, there are various solutions to the situation.

The first step is to try to negotiate a new payment arrangement with the creditors. Sometimes a simple extension of the period for payment is enough, whereas at other times it may be necessary to apply for a payment holiday for a loan to ensure you have enough money to pay your bills.

Previous loans can also be consolidated into a single loan. A consolidated loan has the advantage of lower loan management costs and possibly a longer repayment period. Sometimes a lower interest rate can be negotiated by consolidating loans. Various finance companies grant restructuring loans. The Guarantee Foundation can help you to get a restructuring loan even if you do have a payment default entry in your credit data file.

Some municipalities grant social credit to residents. Social credit may be granted to restructure earlier debts or to finance various expenses. The repayment of social credit is planned according to the situation of each debtor.

If these voluntary means of debt restructuring are of no help, find out if you qualify for debt adjustment. The financial and debt advisory services of legal aid offices can help you with debt restructuring and applying for debt adjustment.

Published 31.12.2018