On the one hand, the fall in lending rates in the past has meant that more and more citizens in Germany, for example, could afford real estate financing. On the other hand, it can still be said that there are many consumers who are threatened with over-indebtedness. This is certainly also because it is not just a credit rate that has become unbearable over the years, which can lead to over-indebtedness.
The reasons why over-indebtedness can occur are relatively diverse. These include, for example, separation from the partner, unemployment, occupational disability, a prolonged inability to work and consumer spending, where the consumer has simply lived beyond his means. But even in the sum of too high credit installments due to over-borrowed loans can, of course, in many cases lead to over-indebtedness.
Many consumers have already heard the term over-indebtedness, but they do not know exactly what it means. Over-indebtedness, in practice, is defined as the fact that the monthly expenses practically outweigh the revenue in practice. Simplified, therefore, those persons are considered to be over-indebted, whose monthly income is insufficient to cover all regular expenses. It is not a matter of a liquidity shortage, which may occur once a few weeks or months, but from the income and expenditure account is then apparent that the expenditure is actually permanently higher than the income.
In many cases, for example, debt counselors state that if the affected consumers had responded in a timely manner, it would not have been over-indebted. In many cases it would have been possible to avoid the occurrence of over-indebtedness with timely intervention. This includes, for example, that expensive loans are replaced early and replaced by cheaper loans. For example, it is possible to significantly reduce the financial burden in the form of loan installments. Another step, which in most cases has potential among almost all consumers, is to reduce spending. For example, anyone who is on the verge of over-indebtedness can often forego or at least reduce a pack of cigarettes, intensive use of the smartphone, or other expenses, which, in a broader sense, are celebrated in the leisure sector. Of course, it is rarely possible to save on the fixed costs, such as electricity consumption or insurance premiums. Nevertheless, there is also the possibility to switch to cheaper offers.
If it is already too late and the over-indebtedness has occurred, there is still the chance to improve the condition through active action. Those who do not do this alone, because perhaps the ideas are missing, through which measures the over-indebtedness can be gotten back under control, can trustingly turn to a debt counseling. These offers are both paid and free, because debt counseling exists, for example, in various charitable institutions. Consumer centers also often have the opportunity to help over-indebted people, or at least give good advice on how to tackle the situation and thus improve their condition.
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