Financial first aid

It usually starts with a reminder, which turns into a debt collection notice. Notice becomes a debt collection claim, and eventually you will be called to the Conciliation Council. If you don't show up there, the road is short to a notice of payment, foreclosure proceedings and, ultimately, a forced sale of the home. 

The road to financial crisis, and how to turn it around

Life is unpredictable. You never know what will come around the next bend. You can get yourself into a financial mess you can't see a way out of. Or you may be affected by unemployment, divorce or illness - which in turn will have consequences for your everyday finances. 

Losing control is easier than you think. Many of our customers have a high income and basically a solid economy, but may have lost control for a period.

The start is usually that a bill is left behind, and then a reminder comes. For many, this is already uncomfortable. A reminder costs you extra, but beyond that it has no major consequences.

By refinancing expensive debt into a new mortgage, your financial situation can become more predictable.

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Kraft Bank's advisers are happy to help you clean up your finances

Have you received a reminder?

All bills and loans you get have a specific date for when they must be paid. If you forget to pay the bill after the deadline, you will receive a reminder shortly afterwards.

It may be perfectly fine to pay a late fee on one bill, but if you have many unpaid bills piling up, it can suddenly become confusing and difficult to pay. People often feel scared and ashamed of having lost control. Many hide the problem away instead of being responsible for all the debt that has built up. Online banking scares and mailbox scares are some of the things that often happen again. Does this apply to you? you can read more about it in our article tips to get rid of mailbox fear.

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A debt collection notice has a short path to a debt collection claim.

The vast majority of people have experienced and received a debt collection notice, which is harmless in itself apart from the fact that you have to pay extra. If the bill is sent to debt collection, you immediately get high fees and interest. The debt collection company will demand to be paid the money that is unpaid. If you delay the claim or are unable to pay, your case will be sent to the conciliation council, which will then start a legal recovery of your money. If you have questions about debt collection, you can read more in the article questions and answers about debt collection here.

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Our advisers often work together to find the best solution for the customer.

Have you received a payment notice?

Payment notice is a notice registered to you as a person for an outstanding debt collection case. This means that you have not paid a bill, even if your creditor has gone to court to get their money. If you have, for example, wage deductions, garnishments, orders or are bankrupt, then you have a payment notice. Here you can read more questions and answers about what a payment note is.

A payment notice can have a big impact on your finances. You will be refused if you apply for credit, loans, insurance and even mobile subscriptions. This is because a payment notice appears on the credit check the providers make of you, and for them it means that there is too great a risk that they will not get their money back. Because of this, it's a good idea to try to get rid of payment notices as soon as possible. One way to do that is to refinance your debt into a new mortgage with a bank that specializes in lending to people with defaults or other financial challenges. 

Here you can read more about how refinancing can help you who have a payment notice. 


For Frode and Marit, the renovation 15 years ago became a painful spiral.

Read about what was the solution for them.

Credit check yourself

Have you lost track and are unsure whether you have debt collection cases or payment notices? You can find this information by using BankID and logging in to credit reporting agencies and debt registers. This information is freely available to you, although there are many who offer to take a credit check on you for a fee. 

Read more here about how you can do a credit check on yourself. 

Consequences of financial challenges

The consequences of debt collection and payment notices can take different forms. It often depends on whether you own a home or a car, and whether you have an income. 

If you have income but do not own a home, this will probably lead to deductions, also called deductions from wages. Here you can read more about what you must take care of if you have received a deduction.

If you own a home, creditors will often first try to secure a mortgage on your home. You will then be notified that the creditor has taken an attachment or attachment mortgage on your home.

In the extreme, this can lead to your home having to be put up for forced sale. A forced sale can be upsetting for the families who go through it. But if you can show the creditor that you are working on a solution, the forced sale can be stopped. Read more about how you can stop forced sales here.


Refinancing - a way out of financial challenges

Refinancing simply means that you replace a loan with another one that has better terms than the one you had before. It also gives you an opportunity to combine several loans and credits into one loan, which gives you a better overview of what you owe.

Refinancing with security in housing means combining loans and credits into one mortgage. We do this because loans such as consumer loans and credit cards often have high interest rates and shorter repayment periods, which can make it difficult to service over time. By refinancing such loans into a mortgage, you get a lower interest rate and a longer repayment period, which makes the monthly cost lower. For some, this is the difference in being able to manage their debt instead of having lasting financial challenges.

Would you like more information? Read everything you need to know about refinancing with certainty here.

When we can't help

Unfortunately, not all of us have the opportunity to help. For some, the financial challenges have gone so far that they have incurred too much debt for us to find a solution. Then it is important that there are other institutions that can be of help. NAV offers free debt advice which can be the first step in taking control of your finances. In other cases, debt counseling may be a solution. With debt counseling you live on a very tight budget for about 5 years, while you pay off debt, and after that you are debt free. Read more about the debt arrangement here.

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