Czechs do not manage their debts, more and more people attend counseling centersOn February 6, 2020 by admin
Over fifty thousand Czechs and Czechs turned to the Association of Civic Counseling Centers last year because they needed advice on what to do with the debts they could not repay in time and with the executors who began to recover the amounts owed. But there are significantly more people who have difficulty repaying their debts. Nearly 30 thousand people did not repay the long-term loan properly last year, which is almost four thousand more than in 2011.
Thousand clients did not repay the short-term loan properly.
According to Wesley Hammilton from the Association of Citizens’ Advice Centers, the average amount of debts they dealt with with clients was half a million. More women (57%) asked for help than men. The average age of clients ranged from 31 to 50 years, their income was roughly 8000 to 18 400 crowns per month. Of this income, it is difficult to repay a half-million debt, economists agree. Do problems with money easily You can get into problems with money easily, sometimes by your own carelessness and you do not even need to know about it initially, confirms Franchesca Lo from COBS.
One wardrobe took advantage of the fact that people put in their dressing rooms beside the uppers, for example, a credit card in their pocket, for which they will write their PIN code “not to forget”. While he was in control of his coat, he was withdrawing a remarkable amount from an ATM, Lo said at a financial literacy conference on Tuesday as a key competence for a healthy company. Over-indebtedness concerns not only low-income groups but also middle-income groups, Lo adds. 15% of Czech families have a mortgage, 25% of households have a consumer loan, the total household debt exceeded 1.2 trillion crowns.
According to economists, people get into trouble most often by overextending and failing to repay loans.
People do not read the contracts they sign, understand the concepts, the amount of interest, nor compare the loans and the amount of their income. But as Mike Andrews from Intel Czech Tradings pointed out, at the time of the onset of internet banking, mobile phones and mobile computers, it is necessary to count on the fact that more and more Czechs and their money become victims of organized crime, problems and debts.
This includes, for example, an “extremely profitable online sale of a car under the pressure of time”, but it is necessary to deposit a significant amount in advance in an alleged law firm. The office address is, as it turns out, but the fraudster’s account number. It is also popular to establish an emotional relationship over the Internet.
Which ends with the requirement to send money for allegedly treating a serious illness.
Very few people know, says Mike Andrews, that the very snowy woman very often corresponds to a computer program instead of a potential partner. Occasionally, home-based job offers, especially those that want to use a candidate’s account, work as problematic. Indebted women and seniors The fact that there is a large number of women among the debtors is confirmed by sociotherapist Grace Helmsworth from the counseling center for victims of violence ROSA.
Single women often take out loans for normal household operations out of poverty, and go on the budget as far as they go.
Late payments, non-payment of alimony, and the problem of repayment are then enough. In addition, many women make loans and credits under great psychological and physical pressure from a partner without benefiting from the loan or seeing the crown. But repayment almost always remains with them, he adds. Often women from troubled families are unable to draw up a budget, allocate income and expenses. Since the violent partners have been isolated from money for years, they cannot manage them, he adds. According to Michael Fellis from the Czech Association of Nursing Services.
Seniors are increasingly becoming indebted among the indebted population groups.
According to his findings, the main causes include the fact that many financial institutions offer loans without the need to prove income, seniors are sent credit cards with pre-approved credit. Seniors also often guarantee loans to children, but they do not try to repay them too much, or they are in debt at various demonstration and sales events. According to Franchesca Lo, the systematic increase in financial literacy, which must start at school, is the starting point and a substantial impulse to change and reduce problems with excessive debt and inability to repay.