Pros and Cons of Borrowing money, debt repayment, interest rate, fail in debt

Pros and Cons of Borrowing money, debt repayment, interest rate, fail in debt

• Explain the pros and cons of borrowing money •

The interest rate on a loan is an important factor when borrowing money.

 • Three points to read when debt repayment is difficult

 • 3 points to read to stop repeating debt

 • 3 things people with debt should do before getting married

 • The only response you should do when you are in court for delinquent debt

 • Two points to read before changing jobs for people with debt

 • Reasons and solutions for not borrowing money from friends

 • Three points to know about the relationship between debt and annual income

 • Why you should pay off your debt faster and how to do it 

• Three tips for people who are struggling to pay their debts

 • Debt disappears with prescription assistance! 

What you need to know about the statute of limitations

 • There is bad debt and good debt! What is the difference?

 • Can I sign an apartment contract if I have debt? What are points for borrowing?

 • What is the difference between safe debt and unsafe debt? Even when you can't pay back

 • Summary of "I have debt" that I want to know in order not to fail in debt Explain the pros and cons of borrowing money If you feel that repayment of debt is a burden, refinancing is one way to do it.

 Refinancing has the advantage of reducing the monthly burden, but it also has the disadvantage of increasing the total repayment amount. Also, although refinancing does not reduce the debt itself, there is also a way to reduce the debt itself by debt consolidation. The advantage of refinancing is that the monthly burden is reduced. Debt refinancing is the process of reborrowing the amount of money you currently owe from a place with a lower interest rate, and then repaying it to a new borrower. Also, if you use a consolidation loan with a long repayment period when refinancing, you can spread the monthly burden and lighten it . In addition, there is also the advantage that the repayment of debts can be consolidated, making it easier to repay. The disadvantage of refinancing the loan is that the total repayment amount increases. Refinancing your debt will lower your interest rate, but it will also increase your total repayment due to the longer repayment period . For example, if you originally borrowed 1.1 million yen from a consumer loan with an interest rate of 18%, the total repayment is generally about 1.32 million yen. If you repay in 60 payments (5 years), the total repayment amount will rise to about 1.53 million yen. Debt consolidation for debts that cannot be resolved by refinancing If there is no prospect of paying off the debt even after refinancing, if there is a risk of being in arrears, or if you are already in arrears, why not consider debt consolidation ? Debt consolidation is a formal procedure that can be taken by people who are unable to repay their debts , and it is also recognized by law. There are types of debt consolidation, such as voluntary consolidation that can reduce interest and delay damages to 0 yen, individual rehabilitation that can significantly reduce the principal, and personal bankruptcy that can eliminate the debt itself, so choose the one that suits you. The point is to minimize the disadvantages. summary If you refinance your debt, you can lower the interest rate and set a longer repayment period, so you can reduce the monthly repayment amount. Keep in mind, however, that the longer the repayment period, the more total interest you pay, so the total repayment is often higher than before the refinance.

 Also, if there is no prospect of paying off the debt even if you refinance, or if you are in arrears, you should consider debt consolidation that can reduce or eliminate the debt itself. The interest rate on a loan is an important factor when borrowing money. The interest rate is very important when borrowing money. When considering where to borrow money, you should always check whether the interest rate is high or low, in addition to factors such as “easiness to pass the examination” and “whether repayment is easy”. Here, in addition to what the interest rate of debt is in the first place, we will explain how the total repayment will change if the interest rate is different, and the difference in interest rates depending on the company. What is the interest rate on the loan? Most people know that borrowing money earns interest. The interest rate is the rate that determines how much interest is paid on a loan . Generally speaking, the interest rate is the rate of interest (annual interest rate) that is earned when borrowing money for one year, so in simple terms, if you borrow 1 million yen for one year at an interest rate of 15%, it will be 150,000 yen. interest will accrue. (Actually, it will be a more complicated calculation method.) How much will your total loan repayments change as interest rates change? Now, let's actually calculate how much the repayment amount will differ between a 5% interest rate and a 15% interest rate when repaying 1 million yen in 2 years (24 payments). If the interest rate is 5%, the monthly repayment amount is about 44,000 yen, and the total repayment amount is about 1,050,000 yen. If the interest rate is 15%, the monthly repayment amount is about 48,000 yen, and the total repayment amount is about 1,160,000 yen. Thus, the higher the interest rate, the higher the interest paid, and therefore the higher the total repayment amount . For the same interest rate, the longer you borrow, the more interest you pay. Interest rates vary depending on where you borrow from. 

The interest rate on a loan varies depending on where you borrow from. For example, if you borrow from a bank with a low-interest loan such as a car loan, the interest rate will be kept quite low, such as 3% or less. Also, if you borrow with a bank card loan, the interest rate may be reduced to about 14%. On the other hand, if you borrow from credit card cash advances or consumer loans, you often have to pay a high interest rate such as 18%. summary The interest rate on a loan is the rate that indicates how much interest you will pay on the amount of the loan. The higher the interest rate on the loan, the more interest you will have to pay. How much interest you can borrow depends on where and how you borrow money, so when you borrow money, you should check the interest rate carefully and think about where to borrow money. Three points to read when debt repayment is difficult If the debt repayment continues for a long time or the amount of repayment is large, life will be difficult. It can also make you feel worse and reduce your quality of life. When debt repayment is difficult, there are things that can be improved by knowing the mechanism why repayment becomes difficult and devising household finances. Also, if you still can't get out of the painful situation with debt, there is also a method of debt consolidation.

 This is why it's hard to pay off debt Debt repayment never ends. I'm having a hard time making monthly payments. The reason for this is that the company that borrowed the money has paid only the minimum repayment amount for a long time . When you repay the loan, the transaction statement will show how much interest you paid and how much you paid for the principal. If you only pay the minimum repayment amount, most of it will be used for interest payments, and the principal will not decrease over time, so repayments will continue endlessly. What You Can Do to Get Out of Bad Debt Being able to deposit more than the minimum payment each month is very important to end the painful debt repayment . In order to do so, it is necessary to devise a lifestyle and create a margin in the household budget . For example, even if you buy the same PET bottled drink, if you buy it at a convenience store, it costs 150 yen + consumption tax, but if you buy it at a supermarket, you can pay about half the price. Also, if you rely on credit cards for payment, you will lose a sense of how much money you are using, so it is better to keep card payments to a minimum. In addition, keeping a household account book will help you keep track of what your extra expenses are. Debt consolidation when debt repayment is still difficult It would be best if you could review your lifestyle and make room in your household budget so that you can deposit more than the minimum repayment amount, but I think there are people who can't because they don't have enough income or have expenses that can't be cut. In that case, consider debt consolidation such as voluntary consolidation, personal rehabilitation, and personal bankruptcy.

 Debt consolidation is a formal procedure that can reduce or eliminate the debt itself , so let's use it if there is no prospect of repayment. summary Debt repayment becomes difficult because you can only deposit the minimum repayment amount every month and repayment will continue for a long time. Review your lifestyle and make room in your household budget so that you can pay back more money each month. If you are still unable to repay, it is better to use debt consolidation, which is a formal procedure to reduce debt. 3 points to read to stop repeating debt Many people know that going into debt is bad, but they can't stop falling into it. There are several characteristics of people who are repeat borrowers. By getting out of those characteristics, you can prevent recurring debt. Here are three things you should know to avoid recurring debt. If you don't control your spending, you'll end up in debt again People who borrow repeatedly tend to spend more than their income . Many people don't know exactly how much they spend each month, and they often waste money unconsciously. Also, some people who get into debt through gambling or wastefulness have addictions that they can't stop even if they know it. In that case, it is necessary to receive treatment at a hospital with a psychosomatic medicine department or a psychiatric department. Get into the habit of saving if you want to stop getting into debt If you want to stop recurring debt, you have to earn more or spend less . 

That said, increasing your income isn't easy, so it's important to reduce your expenses first. The first step to reducing your spending is to keep a household account book . By keeping your spending visible, you'll know what you're wasting money on. For example, if you spend too much money on sweets, you will need to take measures such as eating well and reducing the number of sweets you buy. Also, even if you buy the same sweets, the prices at convenience stores and supermarkets are different, so it is important to keep the prices as low as possible when you want to buy them . If you pay only the minimum repayment amount, you are likely to repeat the debt After you've cut back on your spending, pay back some of the money you can afford. If you pay only the minimum repayment amount specified by the company you borrowed money from for a long period of time, the repayment will not be completed and you may end up borrowing from another company repeatedly. By making more room in your household budget and repaying a large amount of money little by little , you will be able to get out of the burden of repayment faster. summary To stop recurring debt, it's important to increase your income or decrease your expenses to increase your monthly repayments. To do that, you first need to have a clear picture of your spending and determine where the waste is. After that, devise your life to reduce waste and make room in your household budget. It is also necessary for people who are dependent on debt to receive medical treatment at hospitals.

 3 things people with debt should do before getting married I don't think many people have a clear idea of what to do if they are in debt when they decide to marry their lover. First, you must decide whether or not to disclose your debts to your spouse. Also, you should consider early repayment to reduce debt even a little. If there is no prospect of repayment, it is necessary to consider debt consolidation. Decide whether to tell your spouse about your debt Generally speaking, having debts does not have a very good image from the perspective of a marriage partner. If the other party's parents find out, they may oppose the marriage. However, if you get married without paying attention to your debts and it interferes with your married life, your spouse may think that you have been deceived. First, consider your income and debt amount, and decide whether or not your marriage partner will be annoyed . If it is unavoidable to cause trouble, it is better to confide in the other party in advance and have them understand the situation so that trouble will not arise later. pay off debt before marriage If you have debts, it is ideal to pay them off before you get married, but if that is not possible, try to pay them off early so that you can reduce the amount of debt as much as possible . If you only pay back the minimum repayment amount specified by the company that borrowed the money, you will only pay interest and the principal will not decrease. It is important to make room in your household finances with reasonable savings, such as shopping at supermarkets instead of convenience stores, and repay more than the minimum repayment amount. Debt Consolidation If you are already in arrears and there is no prospect of repayment, or if your life after marriage is likely to be affected by debt repayment, you should start debt consolidation before marriage . 

 Debt consolidation is a formal procedure that allows you to reduce or eliminate debts, and it is common to ask a lawyer or judicial scrivener to do it. If you want to reduce your debt without being known by your marriage partner, you should choose a debt consolidation that suits you, such as voluntary consolidation, and if you need a greater debt reduction effect, personal revitalization or personal bankruptcy. summary If you are going to get married with debt, first consider whether the debt will cause trouble for your marriage partner, and decide whether you should tell your marriage partner about the debt. After that, it is important to reduce the amount of debt as much as possible by making early repayments. If there is no prospect of repayment or if it causes trouble for your marriage partner, there is also a way to reduce the debt itself by debt consolidation. The only response you should do when you are in court for delinquent debt If you continue to neglect your debt arrears, you will be taken to court and a complaint will be mailed from the court. 

 At this time, ignoring it is the worst response, and you will lose the trial and be subject to seizure. Even if you are sued for nonpayment of debt, it is still possible to deal with debt consolidation. If you deal with debt consolidation, you can reduce or eliminate your debt, so you will be able to have a much better result than receiving a foreclosure after the trial. If you leave the debt in arrears, you will be taken to court and will be seized. If you are behind on your debts, you will first receive a reminder by phone or mail, but if you leave it unattended, you will receive a content-certified mail saying, "Please repay the debt in a lump sum." If you still leave the delinquency unattended, you will be sued for repayment of the debt. If you lose this trial, the court will issue a payment order and eventually your salary and property will be seized . It is best to deal with debt consolidation if you go to court for delinquency of debt Even if you have already been sued for nonpayment of debt, you can deal with it by debt consolidation . Debt consolidation is a legally recognized procedure for reducing debts, and is performed by a lawyer or judicial scrivener.

 If you are already in court, personal rehabilitation and personal bankruptcy are particularly effective among debt consolidation. If you choose individual rehabilitation , the trial will not stop, but you will not be able to seize it until the procedure is completed. If you finish the debt consolidation procedure in the meantime, you can solve the debt problem on the condition that the principal will be reduced to about 1/5 and you will repay it in 3 to 5 years. In addition, in the case of personal bankruptcy , if a person without property takes simultaneous abolition, seizure will be suspended, and if a person with property takes a custody case, the lawsuit will be suspended. You no longer have to repay the loan. summary If you continue to ignore the reminders by delinquent debts, you will be sued after being asked to repay in full, and eventually you will be subject to seizure. Even after a lawsuit has already been filed, it is possible to ask a lawyer or judicial scrivener to consolidate the debt and have the debt reduced or exempted. In the case of individual rehabilitation, the principal can be reduced to about one-fifth while the seizure is stopped, and in the case of personal bankruptcy, the debt itself is eliminated while the seizure is stopped or the trial is suspended. can do. Two points to read before changing jobs for people with debt Even people who are in debt and are paying it off may want to change jobs for reasons such as ``the workplace doesn't suit me'' or ``I want to earn a higher income''. 

 It is natural to worry that having debt will have a negative impact on your career change. Here, we will consider whether having debt will really affect your job change, and then consider how you should answer if you are asked if you have debt at an interview. In most cases, having debt will not affect your career change. Information that there is a debt is only known to the company that borrows money and the " credit information agency " that is affiliated with banks, credit card companies, and consumer finance . In addition, information from credit information agencies can only be viewed by the lending company to check the repayment ability of the other party, so general companies cannot see it. Therefore, unless you talk about it yourself, the company you are changing to will not find out that you have debts. However, in the case of companies that can see information from credit information agencies, such as companies in the financial industry, it cannot be said that there is no possibility that the company will find out that there is a debt. When asked about debt in a job interview At companies in the financial industry and security companies, you may be asked, "Do you have any debts?" Since these companies will be dealing with customers' cash, they ask questions like this one way to determine if an employee is trustworthy. In this case, it can be said that the most undesirable development is that the lie is exposed . Scholarships and mortgages are often not a problem among debts, and in the case of card loans and cash advances, if the purpose is clear and there is a prospect of repayment, there is a possibility that it will be adopted even if there is debt. there is. 

 The important thing is to be able to clearly explain the history of the loan and the prospect of repayment . summary Information that you are in debt is only transmitted to banks, credit card companies, and consumer finance companies, so there are almost no cases where you fail to change jobs because of debt at other companies. However, please remember that the above companies can see the information of the credit information agency, so there is a possibility that the debt will be found out. In addition, companies in the financial industry and security companies may ask you whether you have debts or not during job interviews. In this case, be sure to clearly explain why you borrowed the money and when you expect to repay it. Reasons and solutions for not borrowing money from friends As the saying goes, “a break in money is a break in a relationship”, borrowing money from a friend can damage your friendship or, in the worst case, cut you off. However, it cannot be said that there will be situations where you cannot get through without borrowing money, such as "I suddenly need medical expenses", "I want to start a new business", or "I can't make the payments in time". .

 Here are some reasons why you shouldn't borrow money from your friends and some solutions you can take instead of borrowing money from your friends. Borrowing money from friends can cut ties If it's a small amount of debt, such as "I ran out of coins when I had to pay," or "I didn't have enough money to pay for the train on the way home," it may not be a big problem. However, when the amount of debt reaches 10,000 units, if you can not pay back the debt from your friend, you may be insulated. Also, if borrowing money from friends becomes a daily occurrence, it is more likely that people will think, "This person is lazy with money" or "This person can't be trusted." As a result, you may lose the friend who borrowed money from you , so it is better not to borrow money from your friend. How to borrow money if you don't want to borrow money from your friends If you want to borrow money in a way other than borrowing money from a friend, you can borrow money from a bank card loan, consumer finance, or use a credit card cash advance limit . When comparing bank card loans and consumer finance, bank card loans with lower interest rates are recommended. 

 Bank loans are not available for part-time workers, but if you can prove that you have a stable income, even non-regular employees and freelancers can use bank card loans. It is possible. In addition, credit cards have a cash advance limit, and if you set a limit, you can borrow money directly from an ATM. If the limit is not set, you can borrow by logging in to the credit card company's website and setting it. Summary Perhaps the biggest downside of borrowing money from friends is that you may lose the friend you borrowed money from. Also, even if you don't cut yourself off, you may lose credibility by saying, "This person is sloppy with money." There are ways to borrow money without bothering anyone, such as using bank card loans, consumer finance, and credit card cash advance limits. Three points to know about the relationship between debt and annual income In order to properly grasp the relationship between debt and annual income, it is necessary to correctly know the "total amount regulation", which is the rule when borrowing. Also, many people have probably seen the question, "What percentage of your annual income can you afford to borrow?" Here, after explaining the total amount regulation in an easy-to-understand manner, we will show the answer to the question, "What percentage of your annual income is your debt?" 

The rule that determines the amount that can be borrowed by annual income "total amount regulation" When borrowing from credit card cash advances or consumer finance, the rule of total amount regulation is applied that " you can only lend up to 1/3 of your annual income " . For example, if your annual income is 3 million yen, you can borrow up to 1 million yen. The total amount regulation is not the amount of debt per company, but the total amount of debt of the person. Banks are not subject to total volume restrictions, so you can borrow money regardless of your annual income. There are some debts that are not subject to the total volume regulation, but simply put, the debt from the bank is not included in the total volume regulation . In addition to low interest loans such as home loans and car loans, there are bank card loans with high interest rates. Bank card loans are similar to borrowing money in consumer finance, and since they are not included in the total amount regulation, there is a risk of borrowing too much. Think about whether you can repay the debt, not "up to 0% of your annual income" The question, "What percentage of your annual income can you borrow?" is a question that you often see on the Internet, but in reality, rather than thinking that "you can borrow up to 0% of your annual income, " It is more important to judge whether For example, even if you borrow the same 1 million yen, if you borrow 1 million yen as a car loan and 1 million yen as a consumer loan, the interest rate and repayment plan will be different. Also, even if you take a loan of 1 million yen in consumer finance, the amount of repayment will depend on whether you continue to pay only the minimum repayment amount specified by the company every month, or whether you can pay more and make early repayments. Ease varies. 

 When taking out a loan, it is best to think carefully about the repayment plan . summary Debt for consumer finance and credit card cash advances is subject to "total amount regulation", and the total amount of debt must not exceed one-third of annual income. However, borrowings from banks are not included in the total amount regulation, so you need to be careful when using bank card loans. Also, when considering the amount of debt, it is more realistic to set up a repayment plan rather than "up to a certain percentage of annual income". Why you should pay off your debt faster and how to do it I think everyone knows that "it's better to pay off debt quickly", but do you know the reason? Here, we will explain why you should pay off your debt quickly, and then introduce ways to pay off your debt quickly. Why you should pay off your debt early When you borrow money, you always pay interest, but it is important that the longer you repay the loan, the higher the amount of interest . For example, if you borrow 300,000 yen from consumer finance, the interest will be about 16,000 yen if you pay it off in half a year, but if you pay it back in two years, the interest will balloon to about 60,000 yen. By the way, the monthly repayment amount when repaid in two years is about 15,000 yen, so it is close to the minimum repayment amount set in general consumer finance. In other words, if you continue to pay only the minimum repayment amount for a long time, you will continue to pay interest and you will not be able to finish repaying the debt . This is the biggest reason why you should pay off your debt sooner. How to pay off debt quickly To pay off your debt faster, you need to set aside money to make prepayments that pay off more than the minimum payment amount. To secure the money for prepayment, you need to increase your income or reduce your expenses, but increasing your income is not an easy task, so here are some ways to reduce your expenses . First of all, it is important to keep track of how much you are spending each month, so keep a household account book . Don't think too much about the details, just make a note of the date, purpose of use, and amount of money spent. Once you can see your spending in numbers, check where the waste is . 

For example, if people who have the habit of buying sweets at convenience stores start buying the same sweets at supermarkets, they should be able to unexpectedly reduce their spending. Also, reducing the number of times you go out to eat or drink with other people when you don't really want to go is another way to reduce your spending without causing too much stress. summary The reason you want to pay off your debt sooner is because the longer it takes to pay off the loan, the more interest you will pay. If you pay only the minimum repayment amount, you will be charged a considerable amount of interest, so it is important to make an "advance repayment" that repays more than the minimum repayment amount. In order to make early repayments, you need to reduce your expenses to create more money. Keep a household account book, use supermarkets instead of convenience stores, and refrain from eating out. Three tips for people who are struggling to pay their debts I think that there are more than a few people who think that they can pay back properly, but have a hard time repaying. There is a trick to repaying debt, and you can pay off your debt faster if you pay it off based on the trick rather than continuing to repay somehow. Here are three ways to pay off your debt. Interest is the biggest enemy of debt repayment It goes without saying that interest accrues on loans. The money you pay back every month is not all the principal repayment, and a not small amount is disappearing to pay interest. In particular, if you only repay the minimum repayment amount determined by the borrower of the debt, more than half of the repayment amount will be used for interest payments, and the principal will hardly decrease. 

Therefore, if you want to finish repaying the debt quickly, you need to keep in mind "advance repayment" to repay the amount that is larger than the minimum repayment amount. Also, if you have multiple debts, you can reduce the burden of repayment by paying off the debt with the highest interest rate first. Saving money is important for paying off debt. If you want to pay off your debt quickly, you will need to make extra repayments, so you need to have enough money to pay off the extras. You need to increase your income or decrease your expenses to make money, but saving is effective in terms of reducing expenses. For example, if you often buy sweets and drinks at convenience stores, you can save money just by making a habit of using supermarkets. It is also effective to check whether fixed costs can be reduced, such as reviewing the smartphone price plan. Debt Consolidation If You Can't Pay Your Debt If you find it difficult to pay off your debts, there are ways to consolidate your debts. There are three types of debt consolidation: voluntary consolidation, personal rehabilitation, and personal bankruptcy.In the case of voluntary consolidation, which is used by the most people, all interest on debts is cut and the repayment period is 60 times. 

You can set the payment level, and the monthly burden is often less than half. In the case of personal rehabilitation and personal bankruptcy, the debt reduction effect will be greater, but the disadvantages will also increase. If you want to consolidate your debts, please consult with a lawyer's office or a judicial scrivener's office. Many law firms offer free consultations. summary As a trick to repay the debt, you can reduce the burden of interest by making early repayments first. You'll also need to make some savings to ensure you have enough money to pay off early. If you are unable to repay your debts, it is a good idea to consult with a lawyer's office or a judicial scrivener's office to consolidate your debts. Debt disappears with prescription assistance! What you need to know about the statute of limitations Surprisingly, many people do not know, but debt has a statute of limitations, and it can be extinguished by applying the statute of limitations. Here, we will explain the conditions for the prescription of the debt and how to use the prescription. Conditions for the statute of limitations to be established In the case of loans from banks, credit card companies, consumer finance, etc., the statute of limitations is 5 years. The statute of limitations is 10 years for loans from individuals and loans from credit unions and agricultural cooperatives. Debts that have reached the statute of limitations can be extinguished by taking the procedure of using the statute of limitations. How to get rid of debt by using prescription Prescription is generally used by using content-certified mail. Content-certified mail is a service in which the post office certifies when and with what content the mail was sent. 

By using the statute of limitations in content-certified mail, it is possible to prevent the claim that ``the statute of limitations has not been used''. When using the prescription, specify the name of the other party, your name and address, and the amount of the debt you want to use the prescription for, and state that you want to use the extinct prescription because the prescription for the debt has been established. It is difficult to establish a statute of limitations on debt So far, we have summarized the conditions for establishment of the prescription and the method of using the prescription, but if the debt is from a company that is still lending, it is very difficult to extinguish the debt by using the prescription. First of all, the statute of limitations is counted from the last repayment date, so if you repay even once, the statute of limitations will return to the beginning. In addition, there is a rule that the statute of limitations will be extended to 10 years if sued in court, and the company that borrows the debt will inevitably file a lawsuit before the statute of limitations expires. In this way, it is difficult to establish a statute of limitations against companies that are still in business, so if debt repayment is difficult, choosing debt consolidation will be less burdensome. Debt consolidation is a procedure for legally reducing debts, and there are types such as voluntary consolidation, personal rehabilitation, and personal bankruptcy, each of which has advantages and disadvantages. Debt consolidation is easy to consult with a lawyer's office or a judicial scrivener's office, so if you are struggling with debt, you should try using the free consultation once. summary The statute of limitations is 5 years for corporate loans and 10 years for personal loans. Debts that have reached the statute of limitations can be extinguished by sending a notification of the use of the statute of limitations by content-certified mail. However, it is practically difficult to extinguish the debt from a general company by using the prescription, so if it is difficult to repay the debt, you should consider debt consolidation. There is bad debt and good debt! What is the difference? In general, people tend to think that "debt is bad", but there are actually good debts and bad debts. Here, we will introduce what kind of debt is bad debt, what kind of debt is good debt, and explain what to do when bad debt piles up. Bad debt is “debt for consumption” The purpose of borrowing is different for each person, but good debt is debt that is intended to be invested in for your future self with a prospect of repayment. 

For example, if you can borrow 300,000 yen and obtain a qualification and increase your monthly income with that qualification, it will increase your income in the future, so it can be said that it was a good loan for self-investment. Conversely, if you borrow 100,000 yen from your credit card to buy something you like, it will not bring you any benefits in the future, so it will not bring you any particular benefits. This kind of debt that is simply for consumption is a bad debt that will make you suffer in the future. If you have bad debts, you will be in trouble with repaying the debts, and you will easily be in a state of multiple debts that you will borrow from other companies. If you have trouble living with bad debt, you can reset it with debt consolidation Some of you reading this article may already be struggling with bad debt. For such people, we recommend that you pay off your debts by debt consolidation. Debt consolidation is a formal procedure for debt reduction recognized by law, and there are methods such as voluntary consolidation, personal rehabilitation, and personal bankruptcy. You can reduce or eliminate debts by cutting interest and delay damages in voluntary liquidation, significantly reducing the principal in personal rehabilitation, and exempting the debt itself in personal bankruptcy. In the case of the most popular voluntary arrangement, the disadvantages are that you cannot use a credit card for about 5 years, you cannot get a new loan, you cannot buy things with installment payments, you cannot become a guarantor for a loan, and you cannot use credit guarantee companies. There are only five things that make it difficult. Debt consolidation can be done by asking a lawyer's office or a judicial scrivener's office, so if repayment is really difficult, you should consult with them. summary Good debt is money borrowed as an investment with the expectation that it will be repaid, while bad debt is debt that is purely for consumption.

 If you have a bad debt, it is often impossible to repay it, but in such cases it is possible to reduce or eliminate the debt by debt consolidation. There are three types of debt consolidation: voluntary consolidation, personal rehabilitation, and personal bankruptcy, and you can ask a lawyer's office or a judicial scrivener office to do it. Can I sign an apartment contract if I have debt? What are points for borrowing? If a person with debts moves into an apartment, I think there is a concern that the apartment contract will be refused because of the debt. In conclusion, just because you have debts does not mean that you will fail the examination of the apartment contract. There are many people in the world who have been able to rent an apartment even though they have debt. Even if you have debt, there is a possibility that you will pass the inspection of the apartment contract Items such as annual income, occupation, personality, history of delinquency, presence or absence of a joint guarantor, and whether or not to cause trouble are key points in the examination for moving into an apartment. People tend to think that if you have debts, it will be negative in the examination, but if you can prove that you can pay the rent firmly while repaying the debts, there is a possibility that you will pass the examination. Even if you have debts, if you have enough income to pay the rent while repaying it every month, you can be judged as having the ability to pay. 

Conversely, if you think that your income is not enough considering the amount of rent and debt repayment, there is a high possibility that you will fail the tenant screening. If you have debts, pay attention to the rent guarantee company when signing the apartment contract Even if you use a rent guarantee company when signing an apartment contract, you will not be rejected just because you have debts. However, if you are unable to repay your debts and have to consolidate your debts, or if you have been in arrears for more than three months, that information will be registered with the "credit information agency." Among the rent guarantee companies, there is a company called "credit sales system" where you can see the information of the credit information agency, and it is said that it is easier to fail the examination if you have done debt consolidation or delinquency. Some rent guarantee companies are not credit sales companies, so if you fail the examination with a credit guarantee company, you should consult with a real estate company to see if you can use another guarantee company. summary It is not possible to be rejected for an apartment contract just because you have debts, but if it is judged that your income is insufficient considering the amount of rent and debt repayment, you will be rejected for being unable to pay. may be lost. 

Also, when using a rent guarantee company when signing an apartment contract, be careful if you have completed debt consolidation or have been in arrears for more than three months. Credit guarantee companies can see information from credit information agencies, so it is said that if there is a record of debt consolidation or delinquency, it will be easier to fail the examination. If you fail the screening, ask them to introduce you to a non-credit guarantee company. What is the difference between safe debt and unsafe debt? Even when you can't pay back What would you do if you needed money urgently? There are many ways to raise money, such as borrowing from family and friends, using consumer loans, and borrowing from banks. Learn more about the difference between safe debt and unsafe debt. Safe borrowing is borrowing from "banks, credit card companies, consumer finance" Many people do not know that banks lend money to individuals, but bank-affiliated card loans such as MUFG Bank's "Banquick" and Sumitomo Mitsui Banking's "Sumitomo Bank Card Loan" can be used by individuals. But you can easily borrow money. In addition to the "shopping limit" that allows you to shop, you can also set a "cash advance limit" that allows you to borrow money directly on your credit card. Consumer loans such as Aiful and Promise have speedy screening, and once you pass the screening, you can easily borrow money from ATMs at convenience stores. 

Some of the reasons why borrowing from banks, credit card companies, and consumer finance companies are safe are that there is a guarantee that the lender is recognized by the government, and that there is a way to solve the problem if you cannot repay. What is "dangerous debt" as opposed to safe debt? Borrowing money from family and friends is actually quite dangerous, and if you can't pay it back, it can damage your family and friends relationships. In addition, moneylenders operating without a license, so-called "black money", are extremely dangerous, and once you borrow money, you will encounter illegal interest rates and illegal collections. In addition, even with the above-mentioned debts from banks, credit card companies, and consumer finance, if you are in a state of debt with no repayment, or in a state of "multiple debts" where you have borrowed from many companies, It's not a safe loan. If you are unable to repay your debt, you can consult a lawyer and perform "debt consolidation", so please remember that you can have your debt reduced. summary Safe debts include bank card loans, credit card cash advances, and consumer loans. 

On the other hand, dangerous debts include debts from family and friends, debts from dark money, debts with no repayment, and multiple debts. If you are unable to repay your debt, you can consult with a lawyer to arrange debt consolidation and have your debt reduced. Summary of "I have debt" that I want to know in order not to fail in debt Many people think that "debt is scary", but do you know what kind of fear it is specifically? There are various pitfalls in debt, but I tried to summarize the most common "I have debt" among them. If you don't want to fail in debt, please read it. A certain debt 1 "multiple debt" The most important thing to watch out for when you have debts is the state of multiple debts, where you can't pay back after borrowing from various companies. For example, you borrowed a loan from Tokyo Star Bank with a Star Card loan but were unable to pay it back, so you used the money you borrowed from Acom to pay it back, and when you were about to fall behind, you borrowed money from your Epos Card cash advance limit. In this way, the state of being in a chain of debts is called multiple debts. If you have multiple debts, you may forget to repay because you have many borrowers, and you may end up paying extra late payment charges. In addition, there are many people who are barely able to repay the minimum repayment amount, so most of the money repaid is used to pay interest, and the principal is hardly reduced. 

There are debts part 2 "I can't pay back the scholarship" There are many people who borrowed scholarships when they were students, but find it difficult to pay them back after becoming a member of society. Scholarships are tuition fees, so the original debt amount itself is often high, and it is a social problem that people of the employment ice age generation cannot repay the scholarships. The Japan Student Services Organization, which provides the scholarship, is famous for not accepting voluntary liquidation, so if you can't pay the scholarship, you have no choice but to use the relief system or go through personal rehabilitation or bankruptcy. . There is a debt 3 "I can not pay the revolving payment" Payment by credit card is the same as debt, but there are not a few people who have difficulty repaying it by revolving. If you revolving, the monthly repayment amount will be smaller, but most of the paid amount will be interest payments, so the principal will not decrease much and the debt will continue for a long time. summary Typical examples of indebtedness include multiple debts, inability to repay scholarships, and inability to pay revolving payments. Multiple debt is a state in which you are indebted from multiple companies, and there is a high risk of late payment charges due to forgetting to repay or not being able to repay. 

The increasing number of people unable to pay for scholarships has become a social problem, and it is necessary to be careful when deciding whether or not to use them. Revolving payment is a service that tends to be used casually, but since the principal does not decrease, it tends to end up in a situation where you have a large amount of debt before you know it.