Advice to people in debt

When there is not enough money for your instalment payments and when claims for collection and reminders pile up, then it is high time to take action. If you are starting to have problems with your personal finances, here is some practical advice on how you can get back on track again.

Debt relief

You can apply for debt restructuring if you can no longer pay your debts. On Kronofogdens webbplats (the Swedish Enforcement Authority’s web site) you will find questions and answers about this. Applications for debt relief must be submitted directly to the Swedish Enforcement Authority who will also reach a decision as to what to do.

You have everything to gain by trying to sort your situation out. If you need help, ring your municipality and ask for budget and debt advice. All the Swedish municipalities offer the service free of charge.  You will find more information in the article Budget and debt advice.

Ten important points if you are in debt.

1. Get an overall picture of your debts. If you lack information about your debts, contact your creditors, i.e. the ones you owe money, and ask for the information. Inform them of your situation.
2. Find out what will happen if you do not pay your debts.
3. Choose which of your expenditures must be paid first.
4. Draw up a financial overview of the situation. Work out what your income is and what your necessary expenses are. Work out how much money you have remaining to pay your debts.
5. Do you have any loans against a personal guarantee? Contact the guarantor and inform him/her about your financial difficulties.
6. Think about what you can change. Can you increase your income or decrease your expenditures? Do you have any assets that you can sell? The car? Is it perhaps necessary that you have to sell your house or your apartment?
7. Make a plan which describes how you will be able to pay back as much as possible of your debts.
8. Negotiate with your creditors.
9. Cancel your credit accounts and destroy your credit cards.  Do not apply for any new loans to pay for interest charges and repayments.
10. Turn to the budget and debt advisers in your municipality if you need help. You will find more information in the article Budget and debt advice.