Nobody wants to become a debtor, but not everything in life goes according to plan. Loans, taxes, maintenance – all of these payments eat up a large portion of the budget, so it’s no wonder that sometimes you simply run out of money and immediately start to get in debt. In this article, we will talk about an important topic – what is in fact a list of debtors, how to get there and, most importantly, how to cross out our name from this database. Keep reading and remember our recommendations!
Debtor List: 3 databases to avoid
Credit delays are only one reason why a person’s name may be entered in debtors’ registers. Currently, there are several official debtors’ databases in Latvia, for example:
- List of SRS debtors. Persons who have failed to meet their obligations to the State on time are included in the list of tax payers. If a person has a debt, information about it appears in the user’s profile in the SRS electronic system.
- list of debtors. Information on maintenance debtors is collected by the Maintenance Guarantee Fund (UGF). The list of UGF debtors is available on Latvia and can be accessed if the personal data of the potential non-payer is known, such as personal identification number;
- private debt history databases. Credit reform, Landoff, Credit Bureau is the largest debt history records in Latvia. Information is passed on to these companies by creditors and some other companies, such as insurance companies, utilities, builders, etc.
The debtors’ blacklist keeps information for five years if the debt is paid off and 10 years if the debt is not repaid. As long as the person’s name is kept in the registers, the former debtor may have difficulty accessing new loans. As you can see, a blacklist of debtors can have a detrimental effect on a person’s life, so now let’s talk in detail about how to prevent your name from ever appearing in these registers!
The best strategies to avoid becoming a debtor
The first rule we want to tell you about is that avoiding getting into debt history databases is much easier than removing your name from debtors lists. By spending time studying credit agreements and laws, budgeting, and avoiding communication with public authorities and creditors, you can minimize the likelihood of debt.
If you are in gainful employment and your only source of income is your employer. But if you get royalties, pay a micro-enterprise tax or make a profit on your investment, you have to take care of the tax yourself. Information on how to pay taxes can be found at:
- Latvian law;
- SRS homepage;
- information articles on the Internet.
Always comply with your obligations, be they taxes or alimony, and your name will not be entered in the debtors’ registers. Remember, in the event of financial difficulties, you must contact the appropriate authority, the SRS or the UGF, to find a way out and agree on a stepwise commitment. In essence, the same was true for loan repayments, but it is worth discussing the database of these debtors in more detail.
The Letva Banks Credit Register and private debtors databases, such as the Credit reform Debtor List, contain information on retail debt to creditors. Credit delays occur for a variety of reasons, but there are four strategies to help you borrow more safely and responsibly:
- Always compare different offers before borrowing and never apply for the first seemingly beneficial loan.
- Be sure to read not only the advertising information but also the credit agreement;
- Make sure you have all the terms of the credit agreement clear;
- borrow only if you have a stable job and a regular income that allows you to pay off the loan on time.
If you are worried about the heavy burden of credit, pay attention to a service such as credit consolidation. By combining several loans into one, you will get a longer repayment term and a lower interest rate, thus avoiding potential debt.
However, if debt is already your reality, you should look for a way to deal with it. Learn what to do next to get rid of debtor status!
3 solutions for debtors
- First of all, don’t worry – the list of debtors is not the most pleasant thing in life, but neither is the end of the world.
- Finding a way out of a situation is relatively easy, provided you meet two basic requirements:you really want to get out of debt;
- Be prepared to work with creditors and government agencies to comply with legal requirements.
Here are three strategies to help you get out of debt registers:
1. Agreement with the SRS on payment of tax debts
The State Revenue Service offers debtors voluntary debt repayment. Remember that debt recovery is the last resort that can be easily avoided – all you need is to start discussions with the SRS in a timely manner. The list of tax debtors contains only the names of those persons who have ignored the SRS’s ability to handle non-contentious debt. On the SRS homepage you will find detailed infographics with instructions on how to handle different situations – come in and find out!
2. Payment of maintenance debt
Settlement of maintenance debts can be difficult because the debtor must both repay the debt to the State Maintenance Fund and continue to pay monthly maintenance payments to the extent prescribed by law or court judgment. If the list of alimony debtors contains your name, there is only one solution – pay off your debts as soon as possible and keep your parental responsibilities in the future.
3. Payment of credit debts
Like the SRS, credit institutions do not commence the debt collection process the day after the loan is overdue. Article 11 of the Law on Credit Information Offices states that the name of a person may be included in the list of debtors 60 days after the deadline and 30 days after the warning is sent. Consequently, the Lindorff Debtor List and other debt history databases will not become a problem if you arrange a debt settlement with the lender in due time. You have at least a month to contact the lender, explain to him / her your situation and work together to find a suitable solution.
The lender may offer a restructuring of the loan repayment schedule, but you can try to combine the loans by refinancing your debts with another lender. It has to be said that credit consolidation is better done before debt creation, as it provides more favorable terms for re-crediting.
Credit options for debtors
At the very end, we want to mention one more thing. Although debtors are not advised to take on additional credit, a variety of situations can occur in life. If the content of debtors in the SRS, the Public Guarantee Fund Public Debtor List and other relevant databases contains your name, it may be difficult to arrange a regular loan. Nowadays, lenders are increasingly choosing to only work with clients with a positive credit history, so credit for debtors is relatively rare.
Use our portal to find out where you can find fast loans with a negative credit history without a job. Before borrowing, do not forget to evaluate all of the loan for and against, and to compare the amount of the loan with your ability to repay it at maturity.