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In the debt trap: 5 important immediate measures

Anyone who miscalculates on loans or unexpectedly has to make do with lower incomes easily gets into a debt trap. If the debt is so high that the installments can no longer be paid on time, you have to react quickly but prudently.

Sort expenses by importance

Sort expenses by importance

What you definitely have to pay are your expenses for rent, health insurance and food. If you need the car to get to work, this is also a necessary expense. If not, you may be able to save a lot of money here by deregistering or even selling. You will probably find many more items that you can remove from your list of expenses sooner or later.

Increase revenue

Increase revenue

If you spend more than you earn, you can also change the ratio by earning more in the future. Paid overtime or better paid shift work may be possible in your work. A sideline can also reduce your problem on the revenue side. But refrain from falling for alluring promises from the Internet. Sources of income that you have to finance first are as taboo as semi-legal or even illegal money transfers.

Apply for government aid

Apply for government aid

Check carefully whether the state grants you maybe financial help. In addition to social assistance and unemployment benefits, you can also apply for housing benefit, for example, if your money is insufficient. To do this, you must also apply for parental allowance, child benefit and the child supplement.

Cancel contracts

Cancel contracts

If you find contracts that you no longer need, cancel them immediately. Although they are due notice periods and contract periods for a while have to nibble on the contracts, but you at least remember the termination. With long-term contracts in particular, it is easy to extend the contract because a deadline has been missed. In addition, at least show your creditors a good will to reduce your expenses, which can be helpful in the next step.

Reduce creditors

Reduce creditors

Once you have an overview of your debt, you will likely find that you owe quite a lot of creditors small or large amounts. Here it is easy to lose track of whom and when a payment has to be transferred. If the debt burden is not yet too high, you can try to reduce the number of your creditors through a clever debt restructuring. Make sure, however, not to raise interest rates for your debts. An installment loan that is based on zero percent financing may be able to wait a little longer without making it more expensive. For this to take a paid credit, would be unfavorable. At the latest for the last step, you should seek professional help with debt counseling. Here you can work out with the advisors whether debt restructuring makes sense and how you can best organize the repayment of your installments.

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