Getting into debt is often the result of a consumer’s financial collapse. Sometimes unfortunate events that lead to a life crisis overlap. In the face of financial backlog, you can not abandon the will to pay your debts. But what if you do not have income? We present the answer to the question – how to pay off your debts without a job?
Many Poles are regularly plagued with falling into debt, leading to truly crisis situations. Consumers fall into financial arrears, sometimes not because of intentional actions, but by accidental or unexpected events. Among such circumstances, you can include a sudden loss of job.
Regular work is the basic source of income for many adults. Although many people on the labor market receive contracts from their employers for an indefinite period, this does not mean that their existence in the company is inviolable. As a result of, for example, a conflict with a supervisor, as well as a policy of reducing posts, thousands of Poles regularly lose their jobs and, as a result, receive income.
Loss of job – dangerous entry into debts
Loss of work can in many cases lead to a dangerous chain reaction. Lack of a source of income for people without large savings can immediately cut off the source of money for the repayment of, for example, current expenses and, even worse, bills and liabilities. Out of fear of losing their livelihoods, consumers try to get rid of non-bank loans in such situations. Waterpumps tempt attractive amounts but also chase with the repayment date.
If there is no improvement in the financial situation, one minute may turn out to be insufficient, and expenses and liabilities – they still remind each other. Many debtors incur further liabilities in such situations, falling into worse and worse debts. Effect? Spiral debt, or a dangerous loop of obligations, which is actually an ordinary, vicious circle. But what if you want to avoid the consequences of debt collection or what is worse, the bailiff’s actions and you do not have a job?
How to pay off your debts without a job?
Willingness to pay off debts and an attempt to fight with the fleeing time is an attitude that can not be forgotten when falling into debt. It is always worth looking for the optimal solution that will help you regain financial liquidity and escape from the debt yoke. ‘
However, it can be very difficult to do this without a source of income earned from work. However, this is not impossible!
For starters – plan your expenses
For starters, it is worth creating an action plan. You should plan and write down your home budget, listing all expenses in it: for food, consumer goods, entertainment and more. It is worth assessing which of these expenses when trying to improve your financial condition are not necessary and it is absolutely necessary to strike them out of your spending list.
Another issue is liabilities, ie bills for electricity, water, gas, energy, internet, telephone, flat, as well as, for example, credit or loans. It is worth assessing which of these expenses can be minimized (eg less use of the Internet or save energy). If you have a loan, it is worth trying to negotiate with the bank to spread your commitment for a longer time, thus gaining lower installments.
The aforementioned savings can save some money from the monthly budget by building an introduction to other activities – because savings alone without a source of income are not enough.
Sell expensive property
Depending on the amount of debt, it may be helpful in the first place to put up for sale valuable property in the face of lack of work. It is worth assessing whether some elements of household equipment are not necessary for us, which will allow us to obtain additional cash, which can be used, for example, for partial repayment of debts. It is particularly advisable to make such considerations in the context of very expensive property.
- Jewelry, precious stamps, watches.
- Coffee machine.
- Tablet, laptop, radio receiver.
- Well-preserved clothes, footwear, accessories for clothing.
- Bike, skiing, snowboarding, scooter.
- A car or other expensive vehicle.
Making a decision to sell one of the aforementioned assets may be difficult at first, but ultimately it may provide a valuable injection of the necessary cash. In the era of online advertising portals, the sale of property can be simpler, more convenient and faster than you might expect.
Negotiate debtors with installments in installments
Another, valuable way will be to negotiate with creditors who currently have debts. The start of talks will not only show the other side that we care about debt repayment, but we also look for a real way to reach an agreement. It is worth to suggest, for example, spreading the debt into installments, which will reduce its monthly dimension. It will not happen without declaring a willingness to look for a job, because earnings are the basic guarantee of having an income.
Here we go back to the starting point. Having income is a security for the creditor who proves to him that the debtor has a source to finance the repayment of the debt. Otherwise, negotiations with the other party may prove futile. For this reason, we encourage you to combine all the above-mentioned tips into one, with the emphasis on the last, most important one. Make every effort to find a new source of employment. This is a basic step to get out of the financial crisis.
Possibility of emergency – announce consumer bankruptcy
However, if the search for a new job turns out to be fruitless, and the debt loop becomes more and more embarrassing – an emergency, but worth considering, the possibility may be a declaration of consumer bankruptcy. This is a more valuable solution in the event of a bailiff entering, who will be searching for the source of the execution of our property for the repayment of the debt.
An application for consumer bankruptcy should be submitted courtly, bearing a one-time fee of PLN 30. Bankruptcy suspends all debt collection activities, giving it a last chance to improve its financial situation. If after the declaration of bankruptcy the consumer finally finds a job, he can file an application for the repayment of the outstanding debts. It may also happen that the debts will be time-barred or the court will declare the debt invalid.
Consumer bankruptcy and related proceedings are tedious and a process that can take years. However, it gives the consumer a chance to improve their situation and start living again – this time, without a loop of growing debts.