Credit Freedom – A Way To Get Rid Of Debt Restart your life Credit | Debt consolidation

When a loan is taken out, the only wish for many is Credit Freedom.

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?

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.

Consumer credit

Consumer credit is a relatively new type of short-term credit for Latvia. You can use it to borrow a certain amount that you can spend at your own discretion – for a purchase, travel, tuition, etc. This article will look at common creditor claims for consumer credit, as well as tips on how to get more (and lose less), when you apply for a consumer credit.

What do you need to know when you want to take a consumer loan?


First, you can save when you apply for a consumer loan by simply comparing offers. This can easily be done on the lenders’ websites, but keep in mind that not everywhere is transparent interest rates and sometimes they are only given after evaluating your ability to repay the loan, etc. Because consumer loan interest payments and maximum loan amount depend on your Monthly income, if you have lower monthly income, it may be more profitable to take a fixed interest rate loan, but if you have a higher income, you are “in love” with the banks, so it is safer to lend and hence the interest rate goes down.

Second, always look into credit processing fees. It seems that the difference of five dollars in the price of the design does not matter if the other lender has a lower interest rate, but the design fees are not always the ones found in the documents. Additionally, there may be additional fees associated with setting up an account with a lender if you have not yet used the services of a lender. And such costs are not always so small.

Finally, keep in mind that there are different ways to pay your loan. Payment may be degressive or uniform; in the first case, the interest paid back will be lower, and the first payments will be higher, so you will pay less each month. In contrast, the single payment method allows you to plan your budget more freely and predictably, since the monthly payment does not change, but in this case you will pay more in interest payments.

What does it take to get a consumer loan?


● Stable and regular income;

● Good credit history, or at least data on it;

● Most lenders lend only from the age of 21;

● Passport required;

● Data on your income for at least the last 3 months;

Make a purchase that you will not regret


Consumer credit is a good option if you want to make a purchase that you will not regret having to limit your finances for a while. Interest rates on consumer loans are higher than on almost all long-term loans, but they are not astronomical and, in most cases, even advantageous considering that it is a short-term loan. If you borrow responsibly, you will only gain by using a consumer loan.