In the case of a seizure, a distinction can be made between a garnishment, a garnishment and a pledge stocking. If there is a seizure, it is always a sign that the person concerned is insolvent. This usually excludes lending. There are, however, certain exceptions. Thus, a loan can be useful to pay off the debts that have given rise to a seizure.
It becomes more difficult when private spending or consumer goods are to be financed with the loan. Often only a payday loan is possible here. Banks have very clear guidelines that they may only grant credit to persons earning an income in excess of the seizure privilege and currently not seized.
Garnishment and distrainting amount
Both in a garnishment and in a no complete garnishment is possible. The debtor must always have a certain basic amount left to finance his livelihood, pay the rent and cover further costs. The amount of the non-disturbed amount is determined by law, is usually reviewed within two years and adjusted to current requirements.
No one can be forced to repay debts or pay credit installments. This is not intended at all. For this reason, it is very difficult to obtain a loan despite garnishment.
In addition, an account or wage attachment always leads to a negative credit bureau entry, which categorically precludes lending from a German bank or savings bank.
Requirements for a loan despite debts
The basic requirements for a loan are a regular income above the attachment exemption limit and a faultless credit bureau. If the credit rating is poor, additional collateral such as a second applicant or a guarantor is required.
Persons who take over a guarantee must not have negative bad debt entries and must be able to meet not only their own financial obligations if necessary, but also pay for the repayment installments if the actual borrower can no longer afford them.
Whether the credit requirements are met on a case-by-case basis is checked by the lenders.
Loans for debt restructuring
The greatest chances of a loan despite seizure always exist when the loan amount is to be used to pay off the debt. In this case, a debt restructuring is spoken. Once the debt has been paid off, the reasons for a seizure continue. Now, the debtor can again fully dispose of his account or his salary or salary.
A rescheduling can be carried out at the house bank, but also at another bank or a private lender. It is worthwhile to compare the conditions of different providers, because there are some significant differences in interest rates, maturities and repayments.
Alternative loan offers
Rescheduling is not always the reason to take out a loan despite seizure. Often, money is urgently needed to finance important purchases for the home or repairs. If you do not have enough money, you’re welcome to get a loan. An existing attachment eliminates the traditional route to the bank.
Here it is necessary to consciously search for alternatives that prove to be feasible. This could be a payday loan, a small loan, an instant loan, or a loan made through an intermediary.
In particular, when it comes to small loan or instant loans, the chances are not bad that a loan application is approved despite a present garnishment.
5 tips on credit despite seizure
1. Check solvency
Before borrowing, it is very important to consider whether it is even possible to pay regular repayments over a longer period of time. Only if this question can be answered in the affirmative, the next steps should be planned and a suitable lender sought.
It is worthwhile to carry out a credit comparison on the Internet, because not always is the house bank or a nearby bank the right contact when it comes to taking a loan despite seizure. Sometimes an instant loan, a microcredit or a payday loan can be the better solution.
2. Compare loan offers
Not only can a credit comparison be carried out around the clock on the Internet, but valuable information can be found on the topic of credit despite attachment. A credit comparison is updated continuously. So the interested parties have the certainty that the listed offers are currently valid.
Anyone who has found a loan despite seizure can contact the provider directly after the credit comparison. This is possible by clicking on the respective offer. The prospective loaner will be redirected to the credit provider’s website, where he can find all the information and submit the loan application.
3. Have loan documents ready
In addition to the completed loan application, the lender needs further documentation. This may be the current proof of income, evidence of the existing employment relationship and evidence of additional collateral. If the loan application is not made in a bank branch, but via the Internet, the personal identity must be proven by means of a postindentes procedure or video identification procedure.
4. Additional collateral
If a loan is not used solely to repay debt but to finance consumer goods, it may be worthwhile to consider whether these consumer goods can be used as collateral for the loan. This approach is widespread, especially for earmarked loans.
Important examples here are the car loan and the loan from the furniture store or the kitchen studio. The loan amount is matched by a specific value. The car, furniture or kitchen will remain the property of the seller until the buyer has fully repaid the loan for financing.
In addition, loans taken directly from the dealer are often cheaper than other loans.
5. Take out a loan – avoid over-indebtedness
In principle, a loan should help to improve rather than worsen the financial situation. For this reason, it is very important to avoid over-indebtedness. If it is not possible to repay the debts or is the borrower overwhelmed with the assumption of further financial obligations – it means: Hands off a loan despite garnishment! In this case, it is strongly advised to seek professional help and seek out a state-recognized debt counseling service.
Employees are anxious to get an idea of the debtor’s situation and work with him to work out a plan on how to repay the debt. Even if this route is difficult, nobody should stick their heads in the sand, but act. This is better than letting the debt mountain grow even further.
A loan with debt has to be distinguished between two different situations. On the one hand, this can be the inclusion of another installment loan to finance an additional purchase. On the other hand, there is the possibility that the new loan will serve to reschedule existing liabilities.
Credit despite debts as financing for a further purchase
It is by no means uncommon for households to apply for another loan, even though they are currently repaying an older loan and thus repaying debts. The renewed borrowing is unproblematic if it is a loan that serves a mandatory replacement or long-term savings. So it makes economic sense in any case to take on the defect of the washing machine despite existing debts a new loan, since the additional cost of using a laundromat or a dry cleaning are significantly more expensive than the additional interest to be paid.
The financial institutions do not fundamentally reject the lending of existing debts. Rather, they examine in the context of their revenue and expenditure account whether the borrower can properly service the new loan as well as the existing debt.
Deciding on lending despite debts is less the absolute loan amount than the monthly credit premium payable. The chances of successfully applying for another bank loan for current liabilities thus increase if the borrower chooses the longest possible term for the second loan.
Borrowing with debts for the purpose of rescheduling
A loan debt naturally presupposes the existence of existing debts. These can also be installment credits as well as the permanent use of the disposition credit or the installment function of a credit card. Especially with regularly used credit lines, the rescheduling is recommended. Bank customers, however, must be careful to apply for their credit with debts to clear the bank account at a time when they have not overdrawn the discretionary credit granted.
Otherwise, most banks refuse to lend, as the overdraft on the granted credit line is an indication of improper use of available funds.
An opportunity to successfully apply for a loan is then only available to the few financial institutions that refrain from presenting current account statements for lending. A special feature of debt rescheduling loans is that the new bank does not fully transfer the loan amount to the borrower’s bank account. Instead, it balances existing debts directly with the existing lenders and pays only a potential top-up amount to their customers.
Furthermore, the credit sub-amount determined for the account balance inevitably enters the applicant’s bank account. The direct transfer of the respective installments to the existing credit accounts ensures that the customer actually uses the loan as agreed for debt restructuring and does not use it as an extension of its credit volume.
Particularly useful is the loan debt, especially if the new loan, taking into account any prepayment penalties incurred cheaper than the existing loans. Furthermore, the loan debt for borrowers, whose desire for a longer term and the associated lower monthly rate of previous contractors has rejected.
Installment payments on existing debts
It is much easier than a bank loan to conclude a partial payment agreement for trading existing debts. Unlike retail banks, the trader does not find out from a credit bureau inquiry he has made which liabilities already exist. For this reason, the buyer of a loan at the place of purchase is particularly obliged to check the ability to pay all incurred credit installments on time.
5 Tips – Credit with Debt
1. Explore alternative credit options
Many individuals have a desire to borrow and thus pay off all their debts. This wish is very understandable. Nevertheless, the pros and cons should be thoroughly weighed against each other. A installment loan from a bank or a reputable private lender can only be given if, despite existing debts, a minimum level of creditworthiness exists. Lenders that promise otherwise are dubious and should be avoided urgently.
With a loan despite debts, an old bank loan can be replaced. It is also possible to combine various bank and credit facilities or use the loan amount to pay unpaid bills.
2. Installment loans
An installment loan is characterized by the fact that the entire loan amount after the grant is paid out in one amount and then repaid in monthly installments. The rate consists of a repayment amount and interest. In use, the borrower is free, which means that he can use the amount of money in whole or in part to pay off old debts. There are several reasons to replace old loans.
Often, the interest rate plays a role, which, despite debt, can be significantly lower for a new loan. For this reason, offers a loan repayment or credit summary, especially in times of generally low interest rates.
A special form of installment loans are the earmarked loans, which are not or only partially suitable for debt repayment.
3. Disposition credit
A credit line is linked to a checking account and is only granted if there is a regular receipt of payment. Disbursed loans have the advantage that they only have to be approved once and can then be used flexibly at any time without separate consultation. They are particularly suitable for meeting smaller consumer demands and can also be used to pay open invoices.
However, it is very important not to leave the account permanently in the minus, but at least in the medium term to provide a balance. An installment loan can also be used for this purpose.
4. Create budget
It is advisable for each prospective borrower to prepare a detailed budget documenting all expenditures and revenues. Only the amounts left over after deduction of expenditures can be used for the payment of credit installments or for the repayment of debts. The bank and any other reputable lender will also examine whether there is a realistic chance of repaying the debt.
A loan must be rejected if this is not the case. Under certain circumstances, it might be better not to take out a loan, but to negotiate with the creditors for installment payments. Under certain circumstances, even small monthly repayments in an amount of around 10 € are possible.
5. Help with over-indebtedness
If the debt is so high that there is no realistic chance of repaying it on its own in the near future, even a loan is meaningless. On the contrary, it is strongly discouraged. If, for some reason, the loan installments can not be paid, this would make the situation even worse.
Especially if dunning or enforcement orders have already been filed, or the affidavit has been filed or insolvency proceedings are pending, no reputable bank will grant a loan. It is important to seek out a state-recognized debt advice center, which can provide effective support if over-indebtedness threatens or already exists.