Debt Consolidation | Tips: Get Out of the Debt Trap

 

 

Every second Austrian has debts, according to a recent study. These are in many cases private debts and consumer debt and that in no small amount. The debts result from consumer credit, overdraft or credit card or private loans to family and friends. How to consolidate the debt and get out of the debt trap, learn here.

 

Austrians are highly indebted in European comparison

Austrians are highly indebted in European comparison

 

The fact that one in two Austrians is in debt is on average across Europe, but Austrians are different from the average in terms of debt levels. 12% of Austrians have private debts of € 20,000 to € 50,000, which is twice as high as the European average.

At just under 10%, private debt is even more than € 50,000, compared with only 3% of the European average.
So many Austrians are comparatively heavily in debt, but how do you get out of the debt trap and what is the best way to consolidate debt?

 

Debt consolidation -so you will be debt-free

Debt reduction -so you will be debt-free

Debts often lead to even more debts due to reminder fees and other follow-up costs, and so creates a vicious circle, which the victims often can not escape on their own. In the end there are often foreclosures, affidavits and insolvency.

It is precisely the hopelessness that paralyzes many debtors in this phase, but the problem can not sit out and the longer you close your eyes, the worse it gets. It is therefore important to face the problems and to actively tackle them.

Anyone who does not believe this alone can get help from a debt counseling service.

Ideally, the way out of the debt trap looks like this:

  • inventory
    In order to tackle the problem, a complete inventory of all obligations must be made
  • Contact creditors
    Many creditors negotiate and accept installments. Banks can convert an expensive overdraft into a installment loan with more favorable terms. In conversation, solutions can often be found
  • Discover and exploit savings potential
    In the course of debt consolidation, you will have to cut back and save and have to give up a lot. It is therefore important to eliminate all unnecessary expenditure and discipline a budgetary book

 

 

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