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Control and recovery from over-indebtedness

 

Getting into debt may be a good way of having access to certain goods, products or services that due to their high price many people are unable to obtain until many years of saving. However, the consumer must be aware, before getting into debt, of what his debt capacity is, for if not, getting into debt can prove fatal

Being permanently in debt, so that the debt becomes a way of life is dangerous. Some persons are incapable (or do not even try) to take control of their economy, especially when income is not very high and expenditure increases
Comisión EuropeaEscuela Europea de ConsumidoresGobierno de CantabriaMAG (Estudios de Consumo) S.L.IFAVConsomation et Logement Cadre de VieAssociation d'avocats

 

The consumer must be aware, before getting into debt, of what his debt capacity is.

In order to control the capacity to get out of debt is very highly recommended to draw up a family budget.

  

Furthermore, advertising is becoming more and more aggressive and presents the possibility of obtaining money on loan (or buying on credit) so easy that people fall into temptation. We are daily bombarded with aggressive advertising campaigns that try to convince us that the new car, new house, the appealing holiday etc, etc, will cover our needs and fulfil our dreams. Only too often advertisers link the purchasing of products with social, professional, personal success. Learning to take away the myths from advertising, to know its true meaning that it is nothing more than trying to sell us an idea, a product or a service, is an excellent preventative measure

Besides this, in order to control the capacity to get out of debt, the most effective measure is to learn how to control expenditure. For this it is very highly recommended to draw up a family budget and to be able to distinguish between products of primary necessity and those of a superfluous nature, that is to say those which we can do without at times of need. If a person has limited resources and does not act with precaution it is easy to fall dangerously into debt