Credit despite wage garnishment
The loan despite garnishment is a controversial, but solvable credit problem. Due to the garnishment, the debtor loses the attachable part of his income. There is hardly any scope for installments. More on the background, which ways are possible, the article explains.
Credit despite garnishment – initial situation
The loan despite garnishment is often the desperate attempt to repay an unbearable credit load. It is well advised who in the case of imminent seizures agrees with his creditors in advance. Thus, the debtor not only spares the garnishment, but also the negative credit rating entry spared. If “the child has fallen into the well first,” the debtor faces two major problems.
Although he is not automatically unworthy of credit through the seizure of wages, the financial scope for payment in installments is now completely lacking. Only the income above the seizure exemption limit can be used for the installment payment. Exactly this amount is now skimmed off by the wage garnishment. The second big problem is the negative credit rating entry. The wage garnishment is almost always automatically forwarded to the credit rating. A rescheduling by a common commercial bank is now eliminated.
Solutions to restore creditworthiness
The idea of returning the situation to normal through debt rescheduling is the right solution. The loan despite garnishment, however, is not carried into the house. Everyone should be prepared for tough negotiations and low blows in this situation. A neutral help can be the discussion with a debt counseling service. The best credit opportunities exist with the main creditor and the house bank. In an open discussion with the house bank, it should first be clarified how it assesses the chances for a rescheduling.
If the result is negative, an attempt to unite with the main creditor is the right step. Not infrequently, this creditor is a bank and can offer the debt restructuring option. The debtor has in this conversation only a stinging trump card. It is the risk of job loss. Many employers are sensitive to wage garnishment. An accountant whose salary is being seized will probably lose his job. He becomes in his function the security risk. Under the circumstances, to repatriate or job loss, so that impoverished to risk, not infrequently opens up an undreamt-of room for negotiation.
Alternatives to unsuccessful credit negotiations
The best known alternative would be the debt repayment loan as a foreign loan without credit rating possible. There are many. The borrowing costs for this type of financing can be comparatively expensive. No one should be in debt in this emergency situation. A precise cost comparison of the offers is urgently advisable.
A further possibility for the loan despite wage attachment offers the personal loan. An open account of the problems and the proof of repayment ability can convince private investors. In this context, it would be possible to offer guarantors or even unpaid assets to secure the loan.