Imprisonment When will Debts Become a Prison?

Debt imprisonment today is more of a parable and, under the European Convention on Human Rights, debts cannot even be sentenced to imprisonment. Even in Finland, unpaid debts may have been incarcerated, but in 1897 debt imprisonment was removed from the penal system, which replaced the imprisonment law.

Finland, too, could have been imprisoned for its debts: before 1897

debt

Crime debts, on the other hand, are a separate matter: in 1901, the Criminal Aggregation Act (Chapter 7, Section 8) was amended so that several convictions could be combined with your imprisonment. Even today, unpaid fines can be sentenced to imprisonment, except in the case of a fine or a fine.

Illustratively, however, the concept of debt security is still used for loans or loans that have become generally problematic, usually due to either Irresponsible borrowing, lending or a sudden drop in solvency.

When will Debts Become a Prison?

Debt becomes problematic when its repayment and cost increase to such an extent that income is no longer surplus to compulsory expenditure and debt. Then there is no extra money that you can use as you wish: all income goes to compulsory expenses, which limits your life. In the worst case, debt cannot be repaid enough and debt can even increase.

How can we get rid of debt custody?

If it is clear that income is simply not enough to pay off debts, enforcement and debt settlement may be the only means of dealing with it.

The payment default entry will certainly come from these arrangements, but the entry will not last forever. Credit information is also restored even after the collection and debt settlement. The subscription will usually remain for 2 years, or until the debt is paid.

How is debt avoidance avoided?

One might think that debt imprisonment is the easiest to avoid when you do not take out debt in the first place. However, the fact is that some purchases have to be borrowed because the funds are not yet sufficient. However, borrowing always requires solvency. You should know that the loan can be repaid.

However, if your ability to pay falls and you find that you are unable to repay your debt as agreed, your creditor should be contacted as soon as possible to agree on a payment plan.

It is also important to have a buffer in your own economy for that famous bad day, which can be achieved by saving, for example. Saving is best achieved when the monthly savings amount is realistic and does not limit your life too much. A good help for success is to list savings as a mandatory expense in your monthly budget.

Everything You Need to Know About Home Savings

The Home Savings is a simple, transparent and perfectly regulated construction. Everyone gets the ‘same’ entry: a 30 percent government contribution to their deposited money, up to a maximum of 72,000 forints per year. But yields are different for each construction – why?

We do not win with the long version

There is no continuity: the difference in yield between different contracts depends on the maturity. But it is worth stepping back and specifying: what is the return on savings?

Yield is the increase in capital received as a result of investments; they are given in percentage form to make it clear. The gross version is the income before taxes and expenses, the net return – which is the case here – is what goes into our pockets.

For Good Finance, if you enter into a short-term contract, that is, 4 years, you will earn quite a substantial return. However, if the maturity is long, our investment will no longer be competitive. The secret to this is simple: our investment, that is, the money in it – which we cannot touch but the bank does – is increasing, while the annual state subsidy remains unchanged, up to a maximum of HUF 72,000.

Compared to a $ 240,000 item, the result is a whopping $ 72,000 (in Year 1), but compared to $ 2,400,000, it’s only a 3 percent increase (in Year 10).

That is, in Good Finance we have more than 2 million forints, and that’s just what we gain in the last year if we make a 10-year plan – which means the profit for the last year is very, very modest.

Support is limited, no upward trend

Support is limited, no upward trend

The reason for all of this is that there is no increase in government credit with more savings in it. So, in fact, we are best served by running several short, 4-year constructions one after the other.

In spite of the many constraints

It is worth considering the other aspects well. For Good Finance, the opening fee is a very big expense, and you should look at the offers to get the best deal on the contract. Let’s also keep in mind that due to quicker disbursements, we will be able to get more money from more financial institutions as of July 2017.