When a loan is taken out, the only wish for many is Credit Freedom.
This is the moment when you no longer have to think about monthly credit payments, because you just don’t have to. You’ll agree – anyone who has borrowed money at the bank or on the internet dreams of getting out of credit.
If the repayment of the loan initially seems to be a no-brainer, the time comes when the loan repayment problem may arise. Sickness, job loss, pay cuts, or family growth are the main reasons why debt is becoming increasingly difficult.
In situations where a quick loan is taken, the problems are relatively minor, as such loans usually have to be repaid within a few months or years. The biggest problems usually occur to those who have taken out a home loan and owe the bank tens of thousands or even hundreds of thousands of USD.
Even if you have already paid 20 or 30 thousand USD to the creditor, the lender can dispose of the property without any remorse at the time the problems arise. This option is provided in the credit agreement, which is signed by anyone who buys an apartment or house for hire.
Often, after the property is forfeited and sold (sometimes at an abnormally low price to the market), the borrower still owes the bank a large sum of money. As a result, property is lost but debt remains. This is the outcome that puts a person in a worse position than when applying for a loan.
How to get rid of debt?
The easiest way to get rid of your loans is to pay them off. Of course, it is much more difficult to do this in real life, and often you have to find another solution that allows you to achieve the desired result faster.
- Loan refinancing or credit consolidation is a way of moving your current obligations to another lender. This can be advantageous in situations where cooperation has been unsatisfactory, the market situation has improved and lenders are offering lower interest rates. The new lender will also want to make a profit, so interest will have to be paid anyway, but it is probably worth trying. The application is free of charge and only payable if the contract is actually signed.
- Selling valuables or property allows you to raise extra money. Having a small loan amount can help you get out of debt, provided you are not too attached to your belongings. Sometimes the emotional attachment is very strong and people are ready to work on the idea all their lives to keep their property or belongings.
- Extra income is a good way to earn more and pay off debt faster. Abroad, it is not unusual to work in multiple jobs or to work outside your main job in a small company. Even holiday shopping with off-the-shelf lotteries, sugar candy or baked potatoes can help you earn tens or even hundreds of USD a day. There is a wide range of options, so all you have to do is find the one that suits you best. Often people feel that their abilities are insufficient, but only those who dare and act are successful.
- Escape abroad is relatively popular. At a time when things are getting too complicated, some compatriots choose to emigrate and start a new life. Unfortunately, within the EU, data is exchanged and debt collectors find debtors outside Latvia. It should also be borne in mind that the payment of debts is not time-barred, provided that the lender sends an invitation to pay debts every 10 years. You may not have to worry about your old debts when you start living in Africa, America or Australia, at least until data is exchanged with third countries.
- Insolvency is possible if your current debts are at least € 5,000 or less in a year or so that you cannot pay off to € 10,000. Bankruptcy or bankruptcy procedures for individuals are relatively simple but require active action. An application must be made to the court, the court will appoint the insolvency administrator. After that, you have to follow the rules of the insolvency administrator and pay according to the schedule. The debtor’s property is also sold to satisfy the creditor’s claims, but if you do not own the property, you should not worry about it. Creditors also have to pay a certain amount each month during the insolvency proceedings. The amount of payments is tied to your income and some of the funds are always left to cover your basic needs. You can find out more about this possibility in the Insolvency Law, but it is worth mentioning that several hundred or even thousands of people in Latvia use this opportunity every year. After an artistic process, you would no longer have to think about getting out of debt, because they would all be extinguished. All you have to do is dare.
We can conclude that there are many different ways to get rid of debt or fast loans in Latvia. Yes, not everything is nice and requires active action, but by taking a year or two today, you might already have gotten rid of all your debts and started living off a clean sheet.