January 26, 2018 Addiction to borrowing is not an imaginary problem at all. The financial sector offer is getting richer. Loans for young marriages, loans for seniors, support for students and even for those in debt. Even banking and non-banking institutions know that help is needed to get out of debts that we bring ourselves. How to recognize morbid credit Is there hope for those in debt? Who will help get out of debt? Our experts will try to answer these questions.
We borrow money, but we don’t always give it back
Research shows that every third Pole in the last two years has decided to use the financial products offered by the market. Most often, young people between 25 and 39 live with the loan. They constitute 44 percent of people who had an obligation during this period 1 . You can’t find anything strange about it – that’s when we start to live on our own, that’s why we need extra money.
Unfortunately, getting out of debt is not as easy as applying for a cash injection. We often have difficulties with timely refunds. Only at the end of the first quarter of 2017, Poles’ debt amounted to PLN 23.6 billion 2 . The problem with payment is mainly due to incorrect estimation of your financial capabilities. Or maybe we use the easily available banking and non-banking sector products too often? In many cases, you can certainly talk about borrowing addiction.
Addiction to taking loans – how to recognize them?
Late payment of obligations is not our only problem. In many cases, you can say that you take a sickness sickly. Although we know that we should not apply for additional funds, we apply for another loan online and make our situation even worse. The more so that applying for a cash injection is so easy! All you need is a telephone and access to the network – financial technologies have had a positive impact on the entire financial sector. While this is a big plus for the financial sector, it is definitely not an asset when it comes to addicts. How to recognize addiction to taking loans?
Symptoms of addiction to borrowing:
- taking one commitment after another,
- constant browsing of offers of banking and non-banking companies,
- feeling the pleasure of signing contracts,
- justifying the need to make another commitment,
- pointless taking loans or indebtedness for goods that are not necessary for life,
- worse mood when the institution rejects the application,
- unconsciousness in the number of liabilities incurred,
- hiding your actions from loved ones,
- ceasing to perform basic roles, e.g. earning,
- loss of control over your own life and total focus on addictive activities.
If we agree with one or more statements, we should not run away from the problem. Can credit cure be treated?
Credit dependence treatment
Credit addiction should be treated like any addiction. Taking ill loans, as well as alcoholism, gambling or shopaholism – affects every sphere of life – family, professional, mental. Money ceases to be a means of payment – they become a way to a better mood, independence, stress-free life and a sense of security. Addicted to loans without a wallet full of money lose ground. Signing the next contract frees them from fear. Therefore, addicts should seek the assistance of a psychologist as soon as possible who will lead the appropriate therapy. Financial and legal advice may also be needed when debts have completely overtaken the budget. The debtor must know as soon as possible that he has fallen into a vicious cycle. His relatives should not turn their backs on him. With their support it will be easier and faster to return to normal.
Excessive borrowing is not a threat to anyone. It all depends on our predisposition to such addictions, life situation or mental state. What to do when credit debts affect us or a person close to us?
How to live with unpaid debts?
Sickly taking loans sooner or later raises the question: “How to live with unpaid debts”? Although borrowing money raises more concerns than joy (for 60 percent of respondents, incurring a commitment involves stress 3 ), some of us fall into so-called “Kredytoholizm.” It starts normally – we take out loans for small amounts, but after a while these small amounts cease to be enough for us. The debts are increasing, and finally we fall into a spiral of debts.
The debt spiral is not the only consequence of taking loans without hesitating. As a result of encumbrance with obligations, we will face the effects of unreliable payments. We will undoubtedly find ourselves on the list of indebted persons, i.e. the register of debtors. ERIF, BIG InfoMonitor, KRD – an entry to these databases repeatedly removes us from the possibility of using the offer. But even then you can get help paying off your debts. The solution is a loan for those in debt, a loan without BIK or a loan without bases.
Loans for those in debt – is it possible?
The hope of those in debt are loans with a guarantor (e.g. in Lpauda Cash) or secured loans. The lender obtains collateral against default and is able to pay a certain amount to a person who does not have a positive credit history. Thanks to a girrant or a car loan, you can count on quite a lot of liabilities and favorable repayment terms. However, you must have a car that meets the conditions of a non-bank institution or find a guarantor, which is not so simple.
Not everyone agrees to a loan guarantee. Many people may simply be afraid that we will not pay back the debt and the liability will fall on their shoulders. In this situation, you can think about debt consolidation.
What is consolidation of payday loans? It is a type of financial product that combines liabilities into one and allows you to pay back one, usually lower installment. Thanks to this, we get great benefits for our budget. We can freely dispose of it without worrying that by the end of the month we will not be able to deal with all our receivables again.
Most important, however, is to show a willingness to quit the addiction of creditoholism! What to do when an addict does not even try to free his commitments?
Can you block loans and credits?
Every adult has the right to decide about himself. What to do when we think that someone in our immediate family is not able to deal with loans? Not only does he not pay his liabilities on time, but he takes more and more loans that are beyond his financial possibilities? Counteracting such behavior is not easy. The more that Poles do not earn as much as they would like, and payday loans quickly support finances.
The first step is the intervention of loved ones and the already mentioned therapy. An addicted person is unlikely to be able to cope with the problem on their own. I need treatment from a specialist who has experience in working with people with addictions. The second option is to collect or reserve your ID card. Taking someone’s document will not solve the problem if the person taking the debt knows his number by heart. In turn, proof of evidence is possible through the BIK website, however, it is associated with difficulties in everyday life. The final solution is legal incapacitation.
Incapacitation of a person addicted to loans
The final solution in addiction to loans is to apply to the court for incapacitation of a person with such addiction. In connection with the Code of Civil Procedure 4 , partial or total incapacitation may be applied for.
Characteristics of incapacitation:
- total incapacitation – when as a result of a mental illness, mental retardation or mental disorder, a person is unable to control his behavior. By legal incapacitation, the legal acts performed by it become invalid – therefore it cannot, for example, incur obligations on its own. The designated legal guardian has the right to do so,
- partial incapacitation – when, as a result of the aforementioned reasons, it is necessary to help in dealing with cases without total incapacitation. An incapacitated person has partial legal capacity, therefore he needs the consent of the guardian for their approval.
It should be remembered that in both cases a psychiatrist’s opinion is necessary. When an addict has high debts, you can apply for consumer bankruptcy.
When to declare consumer bankruptcy?
Sometimes, despite strenuous efforts and the help of relatives, the indebted person is unable to get out of debt. What to do in that case? You can file for bankruptcy. You should also be aware that this solution is only for people who have debts not through their fault. If we were dishonest or dishonest, we do not have that right. The application has a chance to pass when we lost our job, had an accident or got seriously ill. The documents are carefully considered by the court. Therefore, actual grounds for debt cancellation are needed.
The final effect is not always full debt relief. Why? One of the stages of bankruptcy proceedings is a plan to repay creditors with a maximum period of three years to pay their debts. The court decides whether the debtor is capable of any repayment of overdue liabilities, assessing his personal situation and earning potential. If he is not, he announces his debt relief.
Is it worth taking a loan or a loan?
When considering the topic of addiction to credit, many people may ask the question – Is it worth taking a loan or loan online? Yes, if we are careful in doing so. Then additional money can be very helpful in implementing plans, e.g. going on vacation, buying new household appliances or even – buying a car and an apartment. Not without reason, Poles joined the most indebted nations in Europe. The level of crediting the inhabitants of our country (and the inhabitants of Romania) is the highest 5 .
How to borrow so that you don’t get on the list of indebted people? Analyze your creditworthiness, don’t get too high and use helpful rankings (e.g. payday rankings and cash loan rankings). Such activities will certainly affect the security of our budget.