Indebtedness occurs when a household can no longer support her daily needs because of a “life accident” that occurs at the wrong time and it causes harm and embarrassment. Over-indebtedness can happen, you’re never safe from an accident. The accident of life is not for unfortunate but it can happen to anyone, debts pile up and sometimes when we do not know what to do to honor them. Do not despair because the laws have provided solutions honorable exit and accessible to all.

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The debt can happen after a job loss, divorce involving the payment of child support, physical disability due to accident, the death of a spouse, etc.. But do not confuse “accident of life” and reckless spending like Paris, a lifestyle beyond the level of income, etc.. The brave do not seek to criminalize only the fatality have several ways they can get out of debt. However, the first solution must come from ourselves: we must reduce his lifestyle. It starts with looking for a rent-a more modest, sales of the car, get used to taking public transport and control expenses by eliminating all that is superfluous.

The purchase of credit: a way out of debt

If the reduction of his lifestyle is not enough, the second solution is to use a debt consolidation loan, or more precisely the combination of all credits to allow a longer repayment of debt relief and monthly payments. The purchase of credit allows a recalculation of the percentage of transferable adapting to current income, which reduces what to pay per month, certainly lengthen the payout period, but still brings new life to the household budget. The negative side of the system is the fact that borrowing rates rise, real estate mortgage and penalties are added to the invoice. To help you choose the best debt consolidation agency, some brokers and intermediary organizations offer online debt consolidation loan simulation and give you helpful tips to properly accomplish the redemption procedure of credit.

To use the Bank of France

The Bank of France has a special service called “Board of indebtedness.” After deposition of the file by the over-indebted must be voluntary and carefully considered by it, the commission studied the issue for a period longer or shorter, then stands between the creditors and interested in a settlement to amicably. If it happens to any agreement, the case is brought before a judge who may order the spreading of the debt, or even delete it. In the case of a longer repayment, the debt overhang is committed to compliance with a clear picture of payment or face the blows of the law. Know that if you have a home, you can sell it at a reasonable price out of the rut of debt and be able to redeem it four years later, after your situation returns healthier. The elimination of the debt falls under the “law of the second chance” or “Borloo law.” It involves the sale of the assets of indebted whose products return to creditors is like the procedure in case of bankruptcy of a company.

Without going through the Commission of indebtedness, extreme solution, if you think you can get away with contracting new debt and your calculations are correct, complete a credit application for over-indebted. Naturally, the bank will consult the National Incident File for reimbursement loans to individuals (FICPI) to see if you’re not part of the prohibited loan. Be very careful because a new loan adds extra costs that we must not forget in your calculations. And know that even if your name is not on file, but your debt ratio exceeds 33%, you can not have the chance to have a new credit. The debt ratio is calculated by dividing the total expenses per month for fixed income monthly.

Credit companies

Many consumers have become indebted to companies using credit to buy consumer goods. Indeed, some people manage to cheat on tax returns and expenses in order to buy something on credit. Weigh the pros and cons and compare the offers before engaging in transactions that may bitterly regret is a solution to avoid over-indebtedness. Remember wait until your situation is healthy before embarking on a new credit. In surveys of statisticians, the factors aggravating the debt from revolving funds that are very easy to obtain but usually with high interest. The final solution to the debt overhang is a declaration of bankruptcy. It is not recommended because it cuts the bridges between financial institutions and you, at least for five years, and even that job search may suffer adverse consequences.