Often a taboo subject, over-indebtedness in Switzerland is more frequent than one imagines. What are the existing solutions to clean up your finances in case of debts? We offer some explanations.
When do we talk about over-indebtedness?
We talk about over-indebtedness when people can no longer pay their bills on time. Whether it is invoices related to personal credit, leasing, reimbursement of credit cards or even taxes, this situation often occurs following a drop in income. In this kind of situation, it is time to react quickly, especially since solutions exist .
Credit: a solution in the event of over-indebtedness?
Very often, the first reaction, in the event of over-indebtedness, is to turn to personal credit. However, this is rarely the right solution. Indeed:
- Taking credit is a short-term solution, and will result in the repayment of new debt.
- Obtaining a credit, in a situation of over-indebtedness, is generally very difficult, the banks not wishing to lend money to “clients at risk”, and the law does not allow this .
The repurchase of credit, a possible solution
The repurchase of credit, solution which consists in regrouping its debts under only one personal credit, can prove to be effective because it will generally involve a reduction in the monthly payments thanks to:
- A lower interest rate.
- A refund over a longer period.
However , it should be borne in mind that the repurchase of credit is legally considered as consumer credit. Thus, people who already have lawsuits or even late payments will generally not be able to obtain an offer.
Another solution in the event of over-indebtedness: call a specialist
Less known, the specialist’s solution remains the most effective . This involves entrusting all of the debts to an organization that will manage the repayment of these while ensuring enough money to live on . More specifically, the organization will then take care of optimizing your situation:
- Grant request
- Negotiating discounts with creditors
- Reduction or elimination of excessive or unnecessary charges
- Establishment of the tax declaration, verification of taxation
During financial difficulties, it is important to call on the best specialist who can offer you the most appropriate solution according to your own situation. Via debt-relief assistance, it is possible to easily make a free contact request without obligation .