Debt counselling procedure
Are your financial obligations getting out of hand? You don't know where to start to get your finances back under control?
Professional help from a debtor advisory office can help you pave the way to freedom from debt. In this article, we would like to highlight the importance of this support and show you how you can benefit from debt counselling.
Debt counselling procedure in 4 steps
If you are facing the challenge of no longer being able to cope with your accumulated bills and debts and you don't know how to go about it, debt counselling can help you.
Here are the 4 steps that make up the debt counselling procedure:
1) Initial consultation
Debt counselling usually begins with an initial meeting in which your financial situation and your debts are analysed. It is important that you prepare well for this meeting and bring all relevant documents with you, such as proofs of income, bank statements, outstanding invoices, reminders and payment orders.
2) Plan for debt regulation
Following the initial consultation, you and the debt counsellor will work out a plan for debt regulation. Various options will be considered, such as instalment payments, deferrals, out-of-court debt settlement plans or filing for bankruptcy. The debt counsellor will support you in finding the right solution for you and accompany you on the path to freedom from debt. The best way is always to conclude a mutual agreement with your creditors in order to get out of debt step by step so that you can regain your financial freedom and keep it in the future.
3) Setting a financial objective
Debt counselling can help you regain an overview of your financial situation and set realistic goals. It is important that you clearly define your financial goals and work on realising them step by step.
4) Support and guidance
Overall, debt counselling is an important support for over-indebted people to find their way out of the debt trap. Debt counselling supports you from the very beginning in negotiations with creditors right through to the conclusion and helps you to get your finances under control in the long term.
If you find yourself in a financially difficult situation, too, don't hesitate to seek professional help and make a fresh start.
However, it is important to contact a reputable debtor advisory office. Many institutions offer free counselling and debt regulation to avoid adding to your financial worries.
Please note that if you decide to consult a lawyer about regulating your debts, the lawyer will issue a bill of costs.
You can find an overview of debtor advisory offices that are members of the Bundesarbeitsgemeinschaft Schuldenberatung e.V. (Federal Debt Counselling Association) at the following link to find free debt counselling near you (meine-schulden.de).
Conclusion
If you are in debt and don't know exactly how to deal with it all, go to a debt counselling centre sooner rather than later. Try to reach an agreement with your creditors with their help. An out-of-court settlement will not only get you out of debt faster - it's also cheaper.
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Debt counselling procedure
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