“Get out of debt” – In real life

Getting out of debt!

Getting out of debt!

Under the title “Get out of debt” there is a reality show, which is broadcast by the private television station RTL since 2007. In this program, the debt counselor Peter Zwegat shows ways of debt reduction.

In principle, these consequences are the same as overindebted people should do in real life, even if they are not helped by a debt counselor. Each episode of this series describes a case in which a person or a couple is totally overwhelmed with their financial situation.

The starting point is basically the statement of revenue and expenditure to determine the extent to which the persons concerned are able to meet their payment obligations, or they live totally beyond their means. Then, the debtor advisor Zwegat shows ways to save money and provides solutions. His suggestions are usually associated with harsh cuts in lifestyle and consumer behavior. Peter Zwegat also takes on the task of contacting the creditors or finding potential financiers to defuse the current situation. At the end of the program, those affected are usually able to get their debts under control and pay them off or go into private bankruptcy.

The show is a reality show. That is, as it is done here, over-indebted people who are in a hopeless situation can also perish in real life. It is estimated that there are more than three million households in Germany that are over-indebted.

To reduce debt, you need a good plan

To reduce debt, you need a good plan

Over-indebted people first have to realize that they are in a situation they can not cope with if they continue to do so. As a rule, their monthly income is insufficient to cover all their expenses.

It is important to ensure the payment of rent and electricity at any time, because otherwise a power outage or the loss of the apartment threatens. In real life, you should get professional help from a debt counseling service if you are not able to make a plan on your own. Debt counseling centers include people like Peter Zwegat, who have made it their mission to help people who are over-indebted and over-indebted to free debt. Nobody should be too proud to accept this help.

It is very important to seek contact with the creditors and to look for possible solutions here. Many creditors are willing to accept deferments or make a settlement so that they see at least part of the money again.

If revenue is lower than expenditure, it is important to increase revenue and reduce spending. The fixed costs can usually be changed ad hoc, but in the long run. So in the end, it must also be thought about whether a too expensive apartment may be abandoned. The electricity and telephone service providers can also be changed. Current insurances can be terminated or left dormant.

If over-indebtedness has occurred due to unemployment, those affected must do everything they can to get back to work and at the same time accept further ways or other inconveniences. The important thing is to make money to reduce the debt on their own.

Private consumer bankruptcy as a last resort

Private consumer bankruptcy as a last resort

Anyone who, despite his best efforts, can not pay the debt on his own, can go into private insolvency. This is a lengthy process with a good conduct phase over several years, which in the end beckons the release of residual debt, regardless of how high the debts are at this time. The release of residual debt gives people the opportunity to cut and lead a debt-free life.

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