“The big end is yet to come,” says Thomas Berghuber, managing director of the debt advice center in Upper Austria, in view of the tense situation caused by the surge in prices and inflation. Because it is currently not foreseeable how the prices will develop. “The numbers are increasing, but the ceiling has not yet been reached,” he says.
In addition, the additional payments from the increased costs for district heating and gas would only come in the fall. This could mean a sudden awakening for many people and another step into poverty.
“Unfortunately, many have a lack of financial education and now think that it will somehow work out. And then suddenly everything comes together.” Instead, if possible, you should already save for the additional payment, increase the advance payment or agree on payment in installments.
Berghuber sees another problem in the fact that banks and credit institutes are now taking a closer look at the development of current accounts “because they have to calculate losses.” The result could be more rigid interest rate hikes or equity caps for new loans.
In order to prevent the bank from blocking a customer’s checking account if their economic situation deteriorates (and thus making it impossible to pay electricity bills, rent or alimony), Berghuber advises an offensive approach: “Either the bank approaches the customer directly and explains the situation to him or the customer himself asks in good time for an increase in the overdraft limit.”
The increasing number of people seeking help from debt counseling also shows that the situation is critical, says Berghuber: “In the first half of the year, we already had 15 percent more initial contacts than in the same period of 2021.” The number of personal bankruptcies applied for nationwide also increased by 57 percent during this period.
In order to get the rising costs under control, Berghuber also advises looking “absolutely honestly” and making a precise income-expenditure calculation and discussing potential savings with your partner or family.
In an emergency, an increase in hours could be discussed with the employer, for example, before wages are garnished. You should also apply for possible transfer payments (heating cost subsidy, solidarity fund, energy bonus, etc.). (never)
Source: Nachrichten
