Scope for paying loan installments
Social Welfare recipients generally have no way of taking out a loan. Their earnings are so scarce that they leave no scope for paying loan installments or for financing larger consumption requests. For this reason, debt restructuring at Social Welfare will be very difficult to implement.
The situation is further exacerbated by negative Private credit checker information, which is very common among Social Welfare recipients. Here, the data subjects have no other option than to agree with the creditors to pay in installments or to defer the debt. As soon as the Social Welfare recipient has found a new job, he can start paying off the debt. In this situation it is often much easier to take out a loan for the debt rescheduling.
Bank and personal loans for Social Welfare recipients
A loan for Social Welfare recipients cannot be realized with either a German or a foreign bank. The main reason for this is the lack of income. This applies both to people who live exclusively from Social Welfare and to people who work, but have to increase their marginal income with Social Welfare.
Anyone who attaches great importance to rescheduling at Social Welfare should contact an experienced debt counseling center and / or look for a solution together with the creditors. If the creditors become aware of the special situation of the Social Welfare recipient and can recognize his willingness to pay, they already consent to the payment of minimal monthly repayment installments.
The greatest chance of a debt rescheduling at Social Welfare is usually when the Social Welfare recipient can find a person from his relatives, acquaintances or friends who would be familiar and willing to borrow a certain amount of money. Ideally, the debt can be fully repaid through the personal loan. The repayment can be flexibly regulated and largely adapted to the needs of the lender and the borrower.