Over-indebtedness is a real situation that millions of Spaniards currently live with. Bank loans, unemployment and lack of income are drowning more and more families. Since the current health crisis began, private debt has quadrupled. More and more people are reaching the end of the month with their bank account in the red. This situation, on many occasions, leads to depression and psychological disorders that seriously affect health. “Clients have passed through our office in conditions of absolute precariousness: who stopped eating or enrolling their children at the University to pay loans, mortgages, debts from failed businesses, etc. The truth is that they are extreme situations, that remove you “he says. Juan M. Hita, manager Otherwise Abogados.
There are very different situations that can be experienced at any time in life, and unfortunately going through a bad economic situation is the order of the day. Doing nothing is not a solution. “You can find yourself in different situations. If your debt comes from the payment of many small loans, such as: revolving credit card, personal loans or online financing. The first thing to do is study your level of solvency “he says. Juan M. Hita. In this sense he concludes: “See if you need a debt reunification or another type of process, such as availing yourself of the Second Chance Law”.
Faced with such a situation, many private companies advertise debt reunification as the only possible way to resist such a situation. But you have to read the fine print and not get carried away by the despair of the moment. In otherwise Abogados they are clear: “Generally it is misleading advertising, which comfort the insolvent but in the long run they become one more payment to a new credit institution.” Therefore, is it feasible to get a debt reunification that allows you to have a new opportunity to recover? “No bank or credit institution is going to grant you a new loan to pay your debts to third parties, so people resort to these types of advertisements, which are nothing more than a new formula for quick loans with private finance companies” – he adds Juan M. Hita– “They believe that resorting to this type of financing can help, but it is not, it generates a greater debt and enters a whirlpool from which it is difficult to get out without legal advice. Through their abusive interests and martian clauses, they have the client tied up for life ”.
The ignorance of consumer rights makes everyone vulnerable to this type of message that promises short-term solutions that often become a new burden. “Before reapplying for a loan or financing to deal with your debts, it is advisable to properly advise you with lawyers specialized in Banking Law. In most cases there is a solution to get out of debt, you just have to find which is the most viable for each specific case “he concludes Juan M. Hita, manager Otherwise Abogados.