Anyone who has fallen into the debt trap knows only too well what that means. Unopened bills pile up on the table, money is already scarce at the beginning of the month, and often nothing goes to the middle. Then there are also reminder fees and interest.
Quick bargains here, free financing there
It is actually very quick. We are bombarded with temptations from the consumer world every day. “Zero percent financing”, “Buy now – pay later”, “absolutely super cheap” – these are the keywords we hear in advertising. But in the end we still have to pay for all of that.
Thanks to a credit card and unbureaucratic financing, you can treat yourself to something. But then something unforeseen happens: the washing machine breaks, the car doesn’t start and has to be repaired, maybe a school trip, in which the children take part. And suddenly the account is overdrawn. Often they were forced to take out a loan.
Not everyone is to blame
Some get into this situation through negligence because they may have lived above their means, but for others it is social circumstances such as illness, accident, sudden unemployment or separation. Suddenly the income is no longer enough and the mountains of debt become an absolute nightmare.
Young people are also increasingly affected. Companies lure with promising cell phone contracts, and suddenly the high costs can no longer be paid.
Studies have shown that a German private household is indebted on average with more than 8000 dollars, almost three million households are overindebted.
But it’s not just the weakest members of society who are caught in the debt trap and barely get out; in fact, many people who are actually better off are affected.
It is not easy to clear the mountain of debt once accumulated. Due to the sometimes high interest rate on the liabilities, the debt can hardly be reduced despite regular repayments.
There are ways out of the debt trap
In order not to register personal bankruptcy or to avoid foreclosures or garnishment, it is advisable to take advantage of free debt advice at an early stage. Because there you can get help and competent advice quickly and unbureaucratically. Because often those affected lose track of their total debts and no longer know how high they really are.