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Pay off debts without income

Pay off debts without income

Paying off debts without income is a daily activity for many households. But what should you do when you are in this financial position and how can you pay off debts without income?


1. I have debts where can I go? »
2. Amicable debt settlement »
- Debt mediation »
- Remediation loan »
3. Contact with UWV »
4. Statutory debt settlement »
5. Crowdfunding »
6. Stress
7. Debt relief buddy
8. Paying off debts without income and work »

Here's what to do:

1. I have debts where can I go?

debts, broke and pinched wallet
Wallet pinched shut

There are various parties in the USA that you can turn to for advice or help when you are in debt, such as debt counseling from your municipality, social counselors , social workers or a neighborhood team in the area.

2. Amicable debt settlement

The first step: apply for a payment arrangement yourself from the creditor (s). If you see that you will not be able to pay your debts to one or more creditors on time, request a payment arrangement.

A debt counselor can possibly help you with this if you cannot resolve it yourself. We call this an amicable debt settlement and this is a voluntary settlement.

There are two different variants here. Debt mediation and restructuring credit and a BKR registration is made of both.

- Debt negotiation

In debt mediation, the amount that a debtor has to spend each month goes entirely to the creditors, after deduction of a fixed amount that has been reserved for maintenance.

Each year, the amount that goes to the creditors is re-examined. This amount is therefore paid to them annually. When circumstances change (for example, finding work, illness or other changes) it may be that the amount that goes to the creditors each year is higher or lower than expected at the initial situation.

- Remediation credit

In the case of a restructuring credit, the municipal credit bank pays the agreed total amount equal to the creditors. The debtor then repays this amount to this municipal credit bank in installments spread over 3 years (36 months).

3. Contact with UWV

uwv logo

Contact the UWV as soon as possible to investigate the possibilities for receiving a form of benefit. When you have some form of income again in this way, it offers some perspective.

If you still have a bit of a month left at the end of your money, it is advisable to take measures at an early stage and to seek help with this. Read all about it here.

Bills can no longer pay what now? I am in debt and no work.

Depending on your personal situation and (recent) employment history, you may have a chance of receiving benefits , but this often does not mean that you have a lot to spend every month. This can leave you with your hands in the hair and not knowing how to pay off your debts.

4. Statutory debt settlement

When an amicable debt settlement has been rejected by one or more creditors, legal debt rescheduling is the appropriate route. Then you use the Natural Persons Debt Restructuring Act (WSNP).

  • To be eligible for this, a request is required to the court . As a debtor you cannot submit such a request yourself. A debt counselor from your municipality can arrange this for you.
  • Upon approval, the court will then draw up a so-called reorganization plan containing all agreements made with regard to repayment obligations and their duration, tailored to your personal situation.
  • The judge has the judicial power to require creditors to agree to this. This legal regulation makes it possible for many people with financial problems to be debt-free again after 3 to 5 years in the event of forgiveness of the remaining amount of debts (provided the debtor adheres to the predefined conditions).
  • An administrator can be appointed upon admission to the WSNP. This is to implement the scheme and to enforce compliance with the law. The administrator will also calculate a monthly amount to reserve that you have to live on as a living allowance (this is called the amount to be released, 'VTLB').

5. Crowdfunding

You can also pay off debts without income in another way: As a debtor, you place an appeal on a crowdfunding platform as an alternative route in the hope of a better financial situation.

  • Post your personal story and ask for a contribution. People who feel called upon to help you deposit money. Often in exchange for a small consideration that differs per lender.

In addition, there are also crowdfunding platforms where you can see whether a group of investors wants to refinance your debts.

Bundling all your debts in one new loan with a bank is difficult because of negative BKR registrations.

Investors who can receive an attractive interest rate in exchange for the acquisition are an alternative.

However, this is only attractive when you can meet these payment obligations, which makes it impossible for many debtors.

6. Stress

Stress during debt
Debt can cause you a lot of stress

Many people struggle with the stress of subpoenas or threatened seizure of assets by a bailiff. It is no exception when, due to this daily stress and anxiety, someone is unable to engage in things that will ultimately improve the situation, such as looking for work.

Many people are also not well aware of the possibilities that people have in the USA to get help in these dire circumstances.

7. Debt relief buddy

Schuldhulpmaatje is a volunteer organization dedicated to helping people with debts. Trained volunteers help you find a solution.

Schuldhulpmaatje also offers a free walk-in consultation hour at various locations.

Go to the Schuldhulpmaatje website for more info »

8. Pay off debts without income and work

Get rid of your debts in one go? Hmm .. that doesn't work. Unless you have a very small debt.

A study by the Nibud information institute into financial problems from 2018 shows that no less than 32% of Dutch households have payment problems. About 8% of this group even has to deal with serious payment problems (this amounts to about 550,000 Dutch families).

However, less than half of the people with debts seek help for this. When people do seek help for their debts, the situation has often deteriorated considerably over time.

If you do not have a paid job and at the same time are struggling with high debts, you are in a difficult package. If you also do not have sufficient equity to be able to make repayments or if you have the prospect of new work in the short term, it is important to investigate your options as soon as possible to ensure that your debts do not increase further.

5 responses to “paying off debts without income”

  1. At the start of the Wsnp, your administrator calculates how much you can pay off your debts. The amount you need to live on is called the 'amount to be released'.

  2. where can i borrow on a platform independent.of the stingy boring.banks i'm in. don't have much time or am still justified my debt is only 5000n € ,, i have never had a loan. because in my town where I come out in my panties. They do not call anytime I can figure it out, in addition to the debts, it is also an urgency to place behind a consumer I am without furniture and expensive repairs really I wish I never born here.

    1. lakes-n-trails.com

      Dear Sean,

      I understand that you are in a very nasty situation.
      But try to take action. Go to the municipality and ask for help. Don't delay and call now.

    1. lakes-n-trails.com

      Dear Loes,

      Talk to the creditor. This is the best solution. If this is not possible, contact the above authorities.

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