Nowadays, when it is almost modern to borrow for anything, many people find themselves in a debt trap where one loan is repaid by another. The way out of this vicious circle is very bad. Often a desperate person does not see a different starting point than a loan from a usurer. What does it mean?
Czech law defines usury as a crime. In general, it is primarily loans provided with huge interest, such as 100 percent per day. In today’s modern times, such high interest does not have to be usury, but on the contrary, it can be borrowed to a borrower, who then fails to pay and loses property in the form of a pledged property.
What is usury or not
The laws of the Czech Republic lacks a precise determination of the interest rate that can be considered usury. It can be considered double or triple the bank interest rate. Odd is hard to separate from a high interest loan. A loan from a usurer may be one that the borrower has received in distress and may have been upset or unfamiliar with the loans. The creditor takes advantage of the debtor’s situation and misuses it to his advantage.
Read what you’re signing
There are several ways to prevent problems. All you need to do is read the terms of the contract properly, if you don’t know it, ask a lawyer or experts for free financial advice. Check with your company or individuals to find out enough information. Compare individual loan offers, not every offer is a loan from a usurer. And the most important thing is not to borrow. Piling up loans is by no means a good choice. If you no longer know where to go, you can ask for debt. The application is made to the district court and has specific rules according to which the petition must be drafted so that the court approves it. After that, you have to spend a minimum of five years on a livelihood to pay at least 30% of your existing claims. Loan loan is another danger of getting into an even bigger debt trap. Borrowing for everything possible just because of the advantageous loan offer is not at all sensible, especially when you lose your job or a child is born and the family temporarily loses their second income. A loan is a good servant only when you want to borrow to buy a new home or to renovate an existing one.
Likewise, they can be a bad credit card tool if you don’t just use them as a financial reserve. Experts also recommend repayment insurance against disease, job loss, and other inability to repay. When the situation arises that you are unable to pay the installments, it is good to contact the lender and arrange for individual installments, which in case of loan from the usurer does not go or with high fees. If you guarantee real estate, we will be happy to repay your credit immediately to get to your property, because it was all about it.