When the question arises of how to get out of the debt trap, it is usually too late. So the question of how to avoid debt is actually much more important. What do you have to do to avoid falling into the debt trap, because debt is a homemade problem.
Many people in debt can no longer sleep properly because of their debts, do not go to the mailbox and if they do, they do not open their mail. When the bailiff rings the doorbell and tries to seize it, it is actually almost too late. But how is it that more and more people fall into the debt trap and why are young people particularly at risk?
The cell phone as the number one adolescent debt
The mobile phone is the linchpin for many young people. With the new status symbol, young people quickly fall into debt because their income is not enough to pay for the expensive cell phone with all the bells and whistles it offers. Once on Malle on vacation, some photos sent and texted day and night, it is enough to have an invaluable mobile phone bill and a cycle begins that cannot be avoided again and again.
Mail order loans
A debt trap that many consumers, especially those who do not have much anyway, is falling into the rate orders in the mail order business. Buy today, pay later, or take out a installment loan. Mail order is often advertised, with the result that many people become hopelessly in debt by ordering goods that they cannot pay for.
But even if everything is going well and the loans can be serviced because of a regular income, this can also change very quickly if you become unemployed or separated from your partner.
Wrong help from the credit intermediary
Credit brokers often promise quick and unbureaucratic help in precarious financial situations. But credit intermediaries don’t really want to help, they usually aim for the money of desperate customers. So you’d better keep your hands off it.
Avoid over-indebtedness from the outset
Protected against over-indebtedness and very sensibly act the consumers who make it a habit to keep a record of their income and expenditure. This makes it easy to see when the emergency brake has to be pulled because the expenditure is greater than the income.
However, many of the indebted who ultimately had to register for personal bankruptcy did not even know how much debt they have and how much their monthly expenses are.
The overdraft facility, for example, gives visible first signs of financial problems. Anyone who has to earn part of their livelihood from the overdraft facility every month is actually in danger. The overdraft facility is only intended for financial bottlenecks and should be balanced again after three months.
It is important that when you recognize that you are in danger, the emergency brake is pulled immediately. A professional debt counseling service, which is free of charge, can also be used if the child has not yet fallen into the well. On the contrary, many debt counselors would like consumers to find them with financial problems much earlier, because then much more can be saved.