Credit despite garnishment

A loan despite the garnishment is almost impossible, because the garnishment is evidence of payment irregularities that ended in a garnishment. A garnishment of wages also indicates that the customer has not responded to reminders from its creditors and has handled its liabilities negligently. In addition, a negative entry in his Credit Bureau is certain and that has unpleasant consequences for him. At the latest when applying for a loan, he will notice that a loan is almost impossible despite the garnishment of wages.

The loan despite garnishment

The loan despite garnishment

Banks have their legal requirements in the lending business. In addition to the income, the Credit Bureau must not be negative. If the Credit Bureau shows that a garnishment has been carried out, this is an exclusion criterion for a loan for most banks. Even if the income from work is paid regularly, the customer can only dispose of his income up to the exemption limit. Anything above the exemption limit will be seized by the creditor and used to cover the debt.

Should the circumstances change in favor of the loan seeker so that he can find a bank that grants him a loan despite the garnishment, this bank would have no way of seizing the income if the rates were to be suspended again. If the customer receives a loan from a foreign bank, it is not clear to what extent this bank grants a loan despite the garnishment of wages.

It is not just a refusal of credit that the customer experiences, a garnishment of wages also informs the employer that the wages of one of his employees are seized. Of course, this does not shed particularly good light on the employee. However, you should generally not judge these people, not before you know the circumstances why a garnishment is being carried out.

Many workers whose wages are seized naturally have a drop in income. There is only a certain amount left for them to make a living and there are no major leaps to be made. Think of a family with children here, as not only the employee but the whole family also suffers. But be it as it is, the bank will not grant a loan in the normal way despite the garnishment of wages.

If it is important for the customer to make his desolate situation a little easier with a loan despite the attachment of wages, he must take action himself. Here it would be advisable that he get support that helps to draw up a debt settlement plan. As with a normal budget, all liabilities and fixed costs must be offset against each other. These include, for example, low installments or a deferral. Without financial assistance, no further loan should be taken despite the attachment of wages.

The possibilities

The possibilities

The customer can go another way by naming the bank a guarantor. Usually this is also recognized by a bank. But the guarantor should think twice about providing a guarantee in such a financial situation. There should be absolute trust here. One might think here of parents who vouch for their child. However, the guarantor must also have sufficient creditworthiness, such as sufficient income and a clean Credit Bureau, but the guarantor should know that if the customer can no longer pay this loan, the entire credit burden will fall on him.

Under these circumstances, the guarantor should think about his own credit rating. Because the guarantee is entered in his Credit Bureau, so that he is no longer creditworthy, since the guarantee is also included in the budget of the banks.
The customer must also be so open to the guarantor that he puts his entire financial situation on the table and does not leave the guarantor in the dark.

If the loan seeker continues to pursue his or her loan after a garnishment, he does not need to go to his house bank. But there are banks that specialize in such cases. There are service providers that can be found on the Internet who also approve a loan despite the attachment of wages. However, these loans should be approached with great caution, because most providers enrich themselves with the poor creditworthiness of the customer and calculate horrendous interest rates.

Since these loans are subject to interest based on creditworthiness, the question remains whether the customer can solve his financial problem in this way. The customer should try to bundle all of their liabilities with a credit line that the customer can also pay. Of course, a conversation with a bank should be sought, but in such a case the customer will be delivered to the lender and may accept the terms and conditions that the lender offers.

The solution

The solution

If the customer thinks about keeping his garnishment secret, he can come to Teufel’s kitchen. The garnishment of the wages is one of the hard Credit Bureau entries, which actually no longer allows credit. Every bank in Germany asks Credit Bureau before granting a loan. Most banks also want to see proof of salary and bank statements. But just the proof of salary shows the garnishment.

Swiss credit is often an option in difficult cases. Although Credit Bureau plays no role in these loans, the bank takes a look at the public debt register. In addition to oaths of revelation, bankruptcies, foreclosures, wage garnishments are also listed. These are also reasons to reject Swiss credit.

Those who are in debt like this do not need a new loan to accumulate even more debt, but proper debt advice. Volunteers ensure that discussions are held with creditors and banks. Together, a payment plan is then drawn up that should slowly lead the customer out of debt.

If this is not an option either, private bankruptcy would be the solution. However, it is only successful if the attachment goes beyond the behavior phase. If the debt relief is then at the end, the customer would finally be debt free. Then you should live a life without debt.

The last option would be a personal loan. There are portals on the Internet where private investors offer loans to customers who are in financial need. There, however, the customer should play with open cards. Proof of repayment ability can also increase the chances of getting a loan. To what extent investors are willing to seize wages is an open question, because these donors also have nothing to give away.

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