Self-employed people lose their income, employees have to work short-time or even lose their jobs: The effects of the pandemic are increasingly being felt by the Caritas debt counseling centers in the Munich district.
For many, the corona crisis is also becoming a debt crisis.
District
- The high cost of living in the greater Munich area, above all the real estate and rental prices, have been driving more and more people from the middle class into the debt trap for several years.
"This trend has been exacerbated by Corona," says Antje Spilsbury, deputy managing director of Caritas in the Munich district.
Small things like an unpredictable roof renovation or a loss of sales or salary caused by the corona pandemic were enough to get into financial difficulties.
"You fall relatively quickly," says Spilsbury.
Caritas, the charity of the Roman Catholic Church in Germany, has been offering debt and insolvency counseling for over 20 years and at several branch offices in the district - including in Unterschleißheim, Haar, Ottobrunn and Taufkirchen.
In the past few months, the ten employees have increasingly had to deal with people looking for help who have never had problems paying their bills in the past.
With short-time working, suddenly there is no longer enough money
As an example, Spilsbury cites a mother on parental leave whose child does not yet have a childcare place.
“Her husband was a normal wage earner.
Both believed the money would be enough.
Then the man had to take short-time work, ”she says.
The same thing happened to a part-time teacher whose husband suddenly had to work less.
Suddenly the money was no longer enough.
Tips from the Caritas debtor and insolvency advice centers in the Munich district
People who have never defaulted on payments in the past often react with fear and perplexity when they suddenly receive a letter from a lawyer or a debt collection agency. The Caritas debt and insolvency advice centers in the Munich district have tips on how to deal with this situation:
- Don't be intimidated by writing to a debt collection agency
- Check whether there is actually a claim
- In the case of credit: Find out from the contract partner whether it is possible to adjust the rate and duration
- Check that a debt collection agency's list of claims is correct
- Submit partial or total objection in the case of a dunning notice with a disputed claim
- Seek advice from debtors' and insolvency advice centers
You can find more information about the Caritas debtor and insolvency advice centers and contact details online at www.caritas-landkreis-muenchen.de/schuldner-und-insolvenzberatung
But Spilsbury is particularly affected by the cases of clients who were already in the debt settlement process - and who are now in distress again due to the pandemic.
“These are people who were on the right path, for whom we had drawn up budgets, who had more money available through top-up jobs,” says the Caritas representative.
Suddenly these jobs were gone - an important pillar on the way out of the debt trap.
“It's particularly dramatic for these people.
Because they tormented themselves through a long process of debt settlement - and then comes this setback. "
Debt is always associated with psychosocial stress
Spilsbury emphasizes that debts are always associated with psychosocial stress.
That is why the Caritas employees not only took care of the financial problem, but also the psyche and soul of the clients.
"Because if people are not socially stable, you can try as much debt settlement as you want."
Such a situation is particularly stressful for people from the middle class: "Until then, it was unimaginable for many that money shortages were an issue in the family," says Spilsbury. She therefore appeals to those affected to seek professional help as early as possible.
“It's not a stigma.
That's the best thing you can do. ”Because the sooner they pulled the emergency brake, the more freedom those affected would have with regard to their future.
According to Spilsbury, the Caritas debtor and insolvency counseling centers are ready for action even in times of lockdown - by phone, e-mail, but also personally: “Our work is on people.” There are no long waiting times.
There will be an appointment in two or three days, "earlier in an emergency".
