Pay Off Your Debt Faster

Pay Off Your Debt Faster- Complete Controller

Since 2012, the municipality has been responsible for debt counseling under the Municipal Debt Assistance Act (Wigs). Therefore, someone with debts can report to the city or the municipality’s organization that provides debt counseling. The town can also find out through early detection that someone is in arrears and offer help.

There are many ways to pay debt faster. But, still, the problem is that people often don’t take their obligations very seriously, and later, they fall on it while paying the debt and forgetting a few months. But, still, another mistake that they don’t stop is they start taking debts through which their obligations never get down because, on the one hand, they are paying the debt, and on the other hand, they are taking the new debts.LastPass – Family or Org Password Vault


The stabilization phase starts with the registration and first meeting in which a debt counselor decides whether to admit the resident to debt counseling. The debt counselor also collects information for the follow-up, depending on the situation, intake, or crisis intervention.

Crisis Intervention

In a threatening situation, an interview will be held within three working days after registration to determine the request for help. Crisis intervention aims to avert a crisis so that debt counseling is subsequently possible.

Debt Settlement Phase

In the debt settlement phase, the debt counselor represents the interests of someone with debts and creditors as an intermediary. The debt counselor carefully weighs these interests, considering the scheme’s costs and assessing whether someone with debts is ready to get out of debt and stay out of debt through a debt settlement. 

No debt is a great work.” This classic phrase, no matter how many times you bring it back. You can see that it is an undeniable fact because the industry is in debt. Easy to get in but hard to get out. Even if the debt is outside the system, you can say they can’t find a solution.

Repayment Capacity and Amount to Be Released

The debt counselor calculates the Released Amount (VTLB). That amount is sufficient to pay the fixed costs and live on social assistance. Before the agreement, the reserved repayment capacity was from the income above the VLTB. Previously agreed payment arrangements have now expired.Download A Free Financial Toolkit

Percentage Proposal

The debt counselor makes a percentage proposal to the creditors against final discharge. If all creditors accept this, they will receive a percentage of the three-year repayment capacity and cancel the rest of the debt. Therefore, for this right to a new start, someone with debts must try to pay off the debts for a maximum of three years.

Equal Rights

All creditors are treated similarly, except those with a legally privileged position. They get a double percentage. There are some laws which are needed to be read to have the upper hand.

Debt Restructuring

In the case of debt restructuring, the municipal credit bank provides a restructuring loan. It will pay the creditors the amount they agreed to at once. The percentage for the creditors is then fixed. This option gives people in debt more peace because they only must deal with one creditor: repay the credit to the municipal credit bank in 36 months.

Debt Mediation

All income above the VTLB is reserved monthly and paid annually with debt mediation. As a result, the amount paid to creditors may be higher or lower. The income is recalculated once a year.ADP. Payroll – HR – Benefits


Aftercare should prevent someone from getting into problematic debts again. To this end, a debt counselor inquires whether income and expenditure are balanced in the first year after the debt counseling process. If not, the debt counselor refers to counseling, for example, by volunteers or social workers.


Review your debts monthly and sometimes weekly when you are near the date of debt. It is essential to review because there are times when some debts are to be paid off earlier than others, and sometimes they need to be ended sooner than others, or their interest rate will keep increasing.


In conclusion, the Municipal Debt Assistance Act has empowered municipalities to take a proactive role in debt counseling since 2012. The process, from early detection to the repayment capacity assessment, guides individuals through various phases. The journey involves crisis intervention, debt settlement, percentage proposals, equal rights consideration, debt restructuring, and ongoing debt mediation. The emphasis on aftercare highlights the commitment to preventing individuals from falling back into problematic debts. Regular reviews become crucial, ensuring a balanced financial approach and timely debt management. This comprehensive debt counseling framework provides a structured path for individuals to navigate their way out of debt and toward financial stability.

Complete Controller. America’s Bookkeeping ExpertsAbout Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.CorpNet. Start A New Business Now