Debt trap: How you can finally get rid of your money worries now!

Debt trap: How you can finally get rid of your money worries now!

Many people in Germany are affected by debts, which can have a serious impact on their lives. Over-indebtedness occurs when income and assets are permanently insufficient to pay off arrears. This can lead to serious financial difficulties that should not be underestimated. Loud South German newspaper Over-indebtedness can have a variety of causes, including loss of income, illness, separation or the death of a co-obligor. On the other hand, inefficient household management is rarely the main cause.

What is particularly striking is that unemployment is the reason for advice on debt issues in 17.5% of cases. Illnesses (13%) and separations or divorces (almost 10%) also account for almost 40% of the cases that lead to over-indebtedness. Only 8.3% of those affected say that their consumer behavior is responsible for their financial distress. It's important to recognize the warning signs of debt, such as constant use of overdrafts or debts to landlords and energy providers.

Act early on debts

Those affected should not hesitate and act quickly by visiting debt counseling centers. They offer open consultation hours and telephone consultation hours to ensure support. Important steps to dealing with debt are to get a thorough overview of your own financial situation, list your debts and interest, and analyze income and expenses.
Using a budget book can help you control expenses and identify savings potential.

In addition, people in debt should actively approach their finances, which may include a debt plan. Increasing your income through part-time jobs or selling things you no longer need is another way to get back on your feet financially. Open communication with creditors is also very important. Support from friends or confidants can help ease the pressure.

Debt advice as a last resort

If your efforts to reduce your debts yourself do not lead to the desired result, you should seek debt counseling early on. The professionals there are well trained to find a solution and support those affected on their path to financial stability. Further information about the causes of over-indebtedness and preventive measures are available Debt advice Schulz visible.