Getting out of debt when you have money problems – Loan Consolidation

 Nowadays, it has become so easy to take out a loan from a bank, which is not without drawbacks. Indeed, this freedom of access to the loan inevitably leads to over-indebtedness. When you have too much debt, it is essential to adopt the right approach and have good contacts to get out of it. What to do ? Who to contact? We provide you with as much information as possible to help you get through this financial crisis.

Understanding over-indebtedness

Understanding over-indebtedness

Over-indebted people may find it difficult to realize or accept that they are in a precarious situation. However, without awareness, it is impossible to envisage a solution to the problem. This is why it is important to understand what over-indebtedness is.

When are we in debt?

In recent years, over-indebtedness has affected many people of all social classes. It is said that a person is over-indebted when his non-professional debts accumulate and that he is no longer able to repay them. We can also say that a person is over-indebted if he has difficulty making payment on his credit cards, if he has delays in repaying his loans or that he uses a loan to finance his expenses. based.

What are the causes of over-indebtedness?

There are two types of over-indebtedness: active over-indebtedness which is the result of an accumulation of debts and passive over-indebtedness which results from a reduction in income following accidents in life. Everyone can be in this situation overnight, but the main causes are life accidents: loss of a spouse, loss of a job, divorce, illness and serious accidents.

If the situation is not quickly restored, the physical, psychological and financial consequences can be devastating: destruction of family life, stress, illness, eviction from housing.  As you can see, this is a problem that should not be taken lightly and one should not be afraid to take the necessary measures: for great evils the great remedies!

How to get out of debt?

Do you have money problems or do you know someone who is in this situation? To improve your financial health and get yourself out of debt, you will need to start by making lifestyle changes.


Most of the time, people are ashamed to talk about it with others. However, this ostrich policy is not the ideal solution. If you want help, you will need to start by accepting your situation and talking about it with family and friends. Even if they are not experts in the financial field, they will still be able to advise or help you financially.

Ask for help

Dealing with a financial problem can be very stressful and difficult to deal with on your own. If your loved ones are not really effective, there are many associations from which you can ask for help. Some will be able to advise you, while others will even help you file your files with the debt commission.

Stop borrowing!

Loans are designed to help you out when you are having financial problems. However, if you find yourself in a situation of over-indebtedness, it is because you have abused your credits. As soon as you become aware of your situation, stop borrowing because it will not help matters. This is obvious advice, but we want to remind you.

Take stock of the situation

Taking stock is essential to determine what situation you really find yourself in. So make a list of all the credits you have taken out and indicate each rate and repayment period. This will allow you to prioritize payments. On the other hand, list your ordinary and exceptional resources.

Changing lifestyle

To get out of debt, you have to start by changing your lifestyle. You will have to eliminate unnecessary expenses such as TV cables and maximize your resources. If certain essential expenses such as insurance seem too high, you can negotiate for a lower price or change supplier. From the day you decide to solve your financial problems, you will have to change your habits. Also pay attention to online shopping.

To negotiate

Whatever your problem, don’t forget to inform your creditors. You will also need to contact them to extend your payment terms or to obtain a lower rate. A favorable response is not guaranteed, but you will have to try to win a few USD or a few days. You can take the matter to the judge if your creditors refuse to grant you a delay in payment. However, it is not possible to obtain a deadline for certain types of debts. These are alimony, debts to the Public Treasury and amounts due for a criminal conviction.

Use insurance

With the already difficult end of the month, accidents in life do not help matters. To limit your financial problems, do not hesitate to take out insurance to cover job loss, illness, car accidents. This will save you from having to spend the money out of your pocket or having to take out a loan to pay it.

Who to contact in case of over-indebtedness?

Who to contact in case of over-indebtedness?

If the debts are not a large sum, you may be able to solve the problem on your own. On the other hand, with many credits and a limited or nonexistent resource, it is necessary to call on an expert to get out of it. If you are in debt for the first time, here are some good addresses.

The debt commission

The over-indebtedness commission is the first agency to contact in the event of over-indebtedness. Indeed, over-indebted people who are not able to establish a realistic recovery plan or who cannot obtain a reasonable time for payment from creditors can request assistance from the commission.

What is the debt commission?

The debt commission is a public body insured by a secretary of the Banque de France. It is responsible for finding amicable solutions between creditors and over-indebted people when the latter can no longer pay their debts.

How to enter the commission?

To go to the debt commission, you can’t go about it anyhow. There are conditions to be met and procedures to be followed.


To be able to file a file with the debt commission, you must:

  • Be an individual
  • Be French or foreign resident in France
  • French residing abroad and having contracted a credit with a creditor established in France
  • Not be creditworthy
  • To act in good faith
  • Unpaid debts are not of professional origin
The necessary documents

The file must be composed of:

  • A signed letter explaining your situation
  • An over-indebtedness declaration form to download and complete
  • A photocopy of your identity card
  • Various supporting documents according to your situation: family book, divorce decree, salary slip, notifications of right to unemployment benefits, tax notice, unpaid invoices, …

If you meet the conditions listed above, you can submit your application by post or by hand to the Banque de France branch closest to your home. You will then receive a notice of deposit of the file within 2 working days. You will then have to wait for a special commission to study your file. If it is admissible, the commission will contact all your creditors to establish a recovery plan and to negotiate the payment terms and rates. If the request is not validated, the requester can contest this decision within 15 days.

What are the consequences ?

The seizure of the over-indebtedness commission has for the first consequence the recording in the National Incident File of repayment of loans to individuals or FICP. All banks have an obligation to consult this file before granting a loan. Thus, if the applicant is registered with the FICP, he will have difficulty obtaining new credit. If your file is admissible, the commission will establish a personal recovery plan which includes measures to be applied. However, the attachment of the commission also makes it possible to suspend the attachments that have been made to the debtor’s assets. Sometimes, the individual may no longer pay their rent arrears or monthly payments and the overdraft fees no longer apply. It is also possible to obtain a rescheduling of the payment, a reduction or elimination of the interest rate. Finally, the applicant can benefit from a total or partial cancellation of his debts.

The Lite Lender

The solutions proposed by the debt commission are quite severe. However, in some cases, it only takes a few good tips to get by. It is therefore not necessary to contact the over-indebtedness committee directly. Other associations like Lite Lender can support you.

What is Lite Lender?

Lite Lender or Regional Chamber of Social Over-indebtedness is a network made up of 18 associations which are spread across France. Its main mission is to help individuals get out of a difficult financial situation. For this, volunteers who are experts in the financial field are put at your service permanently. Lite Lender should not be confused with the debt commission. Lite Lender confines itself to advising individuals on the problems they encounter and to guiding them until the filing of a file with the Debt Commission. The association also offers training and workshops to fight against financial problems: learn budget management, learn to reduce expenses and increase resources, understand banking and credit.

How to contact the association?

It should be noted that the filing of the application is completely free. Although it is easy to find an agency in your department, you will have to meet certain conditions to benefit from Lite Lender assistance.


To be able to benefit from Lite Lender assistance, you must:

  • Be a French or foreign individual living in France
  • Being over-indebted
  • To act in good faith
  • No longer take out new loans

Please note that Lite Lender can receive you and advise you even if you do not meet these conditions. These conditions are only compulsory for people wishing to benefit from the association’s assistance in setting up an over-indebtedness file with the Banque de France commission.

The necessary documents

The documents required by Lite Lender are the same as those requested by the Debt Commission. Those are :

  • A declaration of over-indebtedness: the form is to be downloaded and completed
  • A signed letter explaining your situation
  • A photocopy of the identity document
  • Various supporting documents depending on your situation

To contact Lite Lender, the easiest way is to make an appointment with the office closest to your home. Then, you will be taken care of by a volunteer who will assess your situation and the extent of your problems, and will propose suitable solutions. If the problem cannot be resolved by Lite Lender, you can file your file with the Over-indebtedness Commission and the association will guide you throughout the process. However, it should be noted that the association does not decide the fate of your file and cannot intervene in your favor with the commission. Its mission stops at the council and the deposit of the files.

How to repay debts?

How to repay debts?

If it is not possible to negotiate payment terms or interest rates, there are many financial means to repay your credits.


Microcredit is a very attractive solution for all those who have not been able to obtain a new loan from a bank because of a FICP filing or a lack of collateral. If you do not have enough resources to pay your debts and you have a professional project requiring financing, you can take out a microcredit. It will indirectly repay your debts since if the project works, you will earn money which you can then use to repay your loans.

Adie microcredit

Adie is the first thing that comes to mind when it comes to microcredit. It is a recognized association of public utility created in 1989 and which offers aid to finance and support the professional projects of people excluded from the banking system. Adie funding, which can be used to start or extend a professional project, is up to 10,000 USD, payable over 48 months and with an interest rate of around 7%.

Lite Lender personal microcredit

Lite Lender is also a good address if you need a personal microcredit. The association offers a loan of 300 to 5,000 USD with an interest rate of 4%. As for the repayment period, it can be spread over 6 to 48 months. Although you can allocate the microcredit to the payment of your rents or the payment of your health costs, it can also be used to pay the costs of a training or to set up a small professional project.

The repurchase of credit for the over-indebted

While buying credit should only be considered as a last resort, it may very well be a way out of debt.

What is credit repurchase?

The repurchase of credit or grouping of credit is a banking practice come from the Anglo-Saxon countries and which is used in France since the years 2000. It consists in substituting a single loan for several previous debts. A single rate, often lower, is then applied to all the credits collected and the chosen institution reimburses the loans from the various banks. In general, the buy-back can be applied to all types of loans: mortgage, consumer.

The Benefits of Credit Consolidation

Credit consolidation allows you to take advantage of many advantages including ease of exchange since the applicant will have only one contact. In addition, the buy-back allows you to benefit from a lower single rate and an extension of the payment period.

The steps to buy back credit

To get started, check with different banks to find the one that works best for you. Once it’s done, file a request with the establishment of your choice. For some agencies, you have to go there, while others allow you to file an application online or by phone. When your request is received, you will be taken care of by an adviser who will assess you and put together your file: supporting documents (account statements, salary slip, etc.). Once the file is completed, it is sent and studied by an advisor specializing in the study of credit buyback projects.

Your file will be evaluated on certain important points such as the debt ratio, the mortgage ratio or even the rest to live. Then a response is issued. If it is positive, the applicant receives a credit contract offer which he must sign and return after a period of reflection. After validation of the contract by the two parties, the funds are released and each creditor is reimbursed. The applicant will have only one credit to reimburse.

As you can see, getting out of an over-indebtedness situation is not child’s play. To avoid this ordeal, it is necessary to take precautions. So always make sure you take out insurance for your loans and save whenever you have the opportunity. Also, when you have financial problems, talk to your bank advisor.