We are in a situation of over – indebtedness when we are no longer able to regularly repay the installments of the loans we have contracted. At the origin of over-indebtedness there can be different causes.
A first case may be that our economic situation has changed compared to when we got the loan: our income has fallen and the installment (or all the installments) has become too high for the new situation.
Another cause may have accumulated, at different times, more funding (which may also include the telephony contract or a leased car, as well as mortgages and loans) whose total exceeded our current purchasing power ( or the maximum amount we can pay each month without putting our economic stability at risk).
It may also happen that at the signing of the loan agreement we did not pay attention to the real costs and any incidental costs and we find ourselves having to pay more than what we had foreseen.
In a situation of over – indebtedness it is certainly necessary to revise its expenses, trying to limit the exits. Depending on the contract we have signed, we can evaluate with the credit institution what the reimbursement margins of reimbursement are : decreasing the monthly amount of the installment will lengthen the time of repayment, but it could be the solution to continue to repay regularly without compromise our economic situation.
In any case, the ideal is to avoid the risk of overindebtedness through conscious choices:
• We resort to consumer credit always in an informed and aware manner
• analyze our economic situation, to see if you can save money by eliminating unnecessary expenses
• We carefully evaluate the offers available on the market and choose the one that is right for us
• we carefully read contracts and information sheets to make clear the real cost of the loan and the monthly amount of the installments
Furthermore, to keep our creditworthiness under control, we can use Mettinconto 365, which alerts us whenever there are significant changes in our credit situation.