News about debt settlement from Crogden Credit

The number of applications for debt restructuring during the first half of 2018 was twice as many as in the corresponding period 2016. At the same time, the number of applications in the first half of 2018 was slightly fewer than in the first half of 2017. According to Crogden Credit, this reduction is due to the fact that more successively the better in recent years. . The strengthened economy can also be discerned in terms of the number of payment remarks. The number decreases.

Much has been done about the Crown Magistrate and the authority’s responsibility for debt restructuring in recent years. It all started in November 2016 with the introduction of a whole new regulatory framework. Here we tell a little about the latest Crogden Credit has to report on debt restructuring.

 

Dramatic increase with the new rules

credit loan

Making it easier for the heavily indebted to both submit an application for debt restructuring and get it granted was one of the main ideas behind the new regulations that came into force in November 2016. The effect of the news can be said to have had an immediate impact and a kind of summit was achieved first half-year 2017. The table below shows statistics from 2015 onwards.

 

Here’s how the new rules work

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Those who are heavily indebted today have the opportunity to turn to the Crogden Credit and apply for debt restructuring. This can now be done directly online on the authority’s website, which means a significant simplification. In addition, fewer tasks are required, which in itself facilitates the process itself.

If the Crown Magistrate decides to initiate debt restructuring, the applicant may live on a kind of subsistence minimum for five years. The idea is that all surplus should be used to pay off debt. It is Crogden Credit who handles all the practicalities regarding repayment. When the debt restructuring is over, the applicant is completely free from his previous debts.

Payment-free months

Living on a minimum of living is cumbersome and provides non-existent space to pay other than what is absolutely necessary. For the sake of ease of debt relief, a rule of two payment-free months has been applied for two years. It’s about December and July.

 

New statistics show interesting facts

New statistics show interesting facts

The Crown Magistrate has analyzed the effects of the new rules. One can draw some clearly interesting conclusions from this analysis. For example, there is actually a very big difference between younger and older when it comes to the possibility of having an application approved. The information below applies to data from 2015 up to the first half of 2018.

 

It is important to seek help from the municipal debt advisors

Each municipality is required to have a function for budget and debt counseling. One of the tasks of the person or group of people working on this is to help the over-indebted in submitting an application for debt restructuring. According to Crogden Credit’s information, it is clear that it is good to take help from the municipalities’ support. 72% of those who contacted the municipality for support received their application. For other applicants, the grant rate was 48%.

 

The age has clear relevance

It is mainly young people who end up in financial hardship due to large debts. At the same time, the elderly have much greater opportunities to obtain debt relief. In the 65+ group, 83% of applications were approved while only 21% of applications from the youngest age group (18-25 years) were approved. It is somewhat unclear why the difference is so great. One guess from our side is that the principle that the indebted person must have done everything he / she could to avoid the situation can come into play.

 

Cause of indebtedness

According to Crogden Credit’s analysis, there is a difference between different types of debt with regard to the possibility of being granted debt restructuring. If you want to sharpen the question something can be said that there is a kind of moral aspect in the context. An applicant with debts due to gambling abuse or overconsumption has less chance of getting debt relief compared to someone who has been indebted due to divorce or illness.

 

Other factors

There are three factors above that can be highlighted in particular. In principle, all other factors are clearly subordinate. For example, the actual size of the debt is not directly central. Also, where you live has no decisive impact on the possibility of getting debt relief, nor what income you have.

 

Fewer payment notes

credit payment

In this context, it should be mentioned that the number of payment reminders actually decreases slowly but surely. The Crown Magistrate believes that this is due to the generally positive economic development in Sweden. However, a type of payment note is increasing, and there are notes due to debt restructuring. Namely, the person who is granted debt restructuring automatically receives a payment note.

Of course, the number of payment reminders is positive, but Crogden Credit raises a warning. They point to the fact that credit behavior continues to change in the negative direction. In short, more people are attracting more types of riskier loans and credits. A deterioration of the economic situation can quickly reverse the positive development.

Do you have too much debt on your credit cards?

Credit cards are very useful, yes, but they can also be very dangerous for your financial health. While they allow you to make large transactions without having to provide a check or carry a lot of cash, while developing your credit and rounding up the end of the month, they can also hurt you if you use them to perform purchases that you are unable to pay when printing your statement. While this produces this, you get into trouble and, before long, you find yourself in a situation of over-indebtedness. You may already be there without you knowing it!

Are your credit cards overcharged? Are you “addicted” to your cards? Here are 12 clues that your debt level is being made unbearable, or at least, problematic:

 

You live in denial

credit debts

Do you often choose to forget or ignore what you need when you have another transaction to complete with a card? Do you neglect to open your monthly statements? Do you lie to those who are dear to you to hide your true level of indebtedness?

If you answered yes to one or more of these questions, you probably live in denial of your debt. You need to regain control now by recognizing the seriousness of your situation.

 

You choose to ignore your balances

You choose to ignore your balances

While you are aware that you have a credit card and that it probably has a significant balance, you never check it. You only pay the minimum anyway, so the total balance does not matter to you.

 

Minimum payments

Minimum payments

Speaking of the minimum payment, you do not pay more than this because your budget does not allow it. This is one of the most harmful practices of overindebted people: their payment is used almost exclusively to pay the interest charges and they are therefore not able to reduce their total balance.

 

Your budget is strict

Your budget is strict

Once your accounts, minimum payment, rent and groceries are paid, you have nothing left to keep you entertained or even saving money. Unfortunately we can not live without entertainment, so you go out and pay with your credit card. This will only increase your balances and tighten your monthly budgets a little further. Here we see the beginnings of a vicious circle.

 

You have nothing saved

You have nothing saved

You want to save your money to make a cushion, but you have nothing to spare. Once your accounts are paid, you have nothing left to save. This means that if you have an unexpected expense, you will have no choice but to increase your card balance.

 

Thinking of getting, or else you already have a second job

Thinking of getting, or else you already have a second job

You do not always have enough of your fixed income to pay for what you owe. You work overtime, or you have a second job to cover your debts.

 

Your limits are reached

Your limits are reached

Your credit card balances are often at their limit. This is difficult not only because you can not support this level of indebtedness, but also because being at its limit, or exceeding it can generate additional costs that will only affect your financial health.

 

Depend on your plastic

credit loan

Are you unable to leave your card at home? Do you find it necessary to use your available credit immediately when you have made a payment? These are signs that you are “hooked” and this may be a serious contributing factor to your debt load.

 

Used a card to pay another

Used a card to pay another

If you make cash advances from one credit card to pay another, it is clear that you are over-indebted. This situation is particularly troubling because it is impossible to deleverage using this method.

 

We refuse to grant you more credit

We refuse to grant you more credit

You have tried to open a new credit card account because your other cards are at their limits and you need money for your everyday expenses, but you have been refused. Your debt level is already too high and you have become an unacceptable risk.

 

Your payments are always, or often late

Your payments are always, or often late

Despite your overtime and hard work, you can not keep up with the demand. There is always one or more payments that are late. This hurts your financial situation even more, as late payments are reported to credit bureaus, and they have a detrimental effect on your rating.

 

Are you able to refund everything?

Are you able to refund everything?

Can you repay your credit cards within a year? Otherwise, you need help. Ask yourself: When was the last time you spent a month without using your credit cards?

 

It’s time to ask for a hand

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If one or more of the above indices apply to you, it is time for you to regain control. It is difficult to get rid of such a large debt, and it will hurt your financial and personal development. A personal loan with a reasonable interest rate is an immediate potential solution to your debt distress crisis. Quebec loans can help you find the best solution for your particular situation. Its simple and fast application process will allow you to obtain the loan you need as quickly as possible. You will be able to immediately take back control of your financial situation. Once you have paid off all your credit cards, you will feel reborn. You will only have to make a simple payment to Loans Quebec, without having to worry about a variety of deadlines and minimum payments.