If you have outstanding debts, it is not always easy to get out of here. Certainly if there is an income missing which causes the debts to accumulate. In addition to searching for a source of income, there is the possibility to borrow with debt to close some gaps. If you want to borrow with debt, there are several options that we will discuss here.
What do you have to consider if you want to borrow with debt?
‘Borrowing money, costs money’. The well-known slogan is not for nothing. Because if you borrow money to pay off a debt, you naturally create a new debt that must also be repaid. It is therefore wise to first consider whether this is the best way. However, it can be a solution if you prevent your debts from rising.
Nowadays it is not easy to borrow money if you have debts. Many lenders do a credit test and see if you have a negative Banker registration. If this turns out to be unfavorable, many banks will be extremely careful and will even keep their hands on the bill. What are the options if you want to borrow money with debt?
Family and friends
Many people have a nice following where they can go for the necessary support. And perhaps also for financial support. This is the cheapest and easiest way to borrow money. You can agree on a very low interest rate, which can also be given back so that you can even borrow interest-free with a detour. Always prepare a contract with all agreements clearly listed. This is to prevent a fight and disappointment.
You can easily take out a mini-loan via the internet and with some providers also without a Banker check or statement of wage slip. Someone must stand as a guarantor, if repayment is not possible. This form of borrowing is especially nice if you have just that little salary shortfall at the end of the month or if you have to make a not too large unforeseen expense. Paying off other debts with Small Loans makes little sense because the interest is often not lower. You then only carry water to the sea.
A Payday Loan is another option if you want to borrow with debt. The amount of the loan and the interest, as well as the term, are fixed. So you know exactly where you stand. You have banks that repay most of your debts for you in one go. These therefore no longer increase. Then you only have one loan: the one with the bank. This creates an overview. If the interest at this bank is lower than that of the various creditors that you previously had, this may be more advantageous.
With a revolving credit you can borrow flexibly at a flexible interest rate. This form is especially useful if you want to cover other (small) debts with it and think you can pay off a little extra during the term. This can be done without penalty. And if interest rates fall, that is of course entirely favorable.
Rowfunding is a relatively new option to borrow money with your debts. You register on an (online) Rowfunding platform and describe your situation, plus the amount you want to borrow. Lenders will read your story and can register for the loan request. If there are enough lenders, the loan is complete. You then pay this back to the providers later, including interest, via the platform. Nowadays, more and more personal stories are appearing with cries for help from desperate people who need money. Some even offer their services (for example cleaning) as a partial repayment of the debt. Or they ask for a lower interest rate. In this case, you rely on the generosity of the financiers.
Debt assistance and debt restructuring
Another option that you can consider is to go into debt counseling. You will then be supported in resolving your debts. Not only by sitting around with creditors, but also by looking at the causes of all problems (personal situation and patterns). There are various agencies where you can go for help or go to your municipality for a consultant. Sometimes you can transfer your debts to the Municipal Credit Bank. Then you only have one loan instead of many. This creates an overview. If this does not help you, you can be admitted to the Natural Persons Debt Restructuring Act. In that case, a judge will examine your situation.