A debt to the Corona Guard is an unfortunate situation. This means that they have neglected their payments to such an extent that the creditor pushes the debt in place of the lender.
An unpaid debt to the custodian means that you are obliged to prioritize your income and deduct a large part of it to repay the debt as soon as possible. Once the debt has been paid, you receive a payment note, which remains in the register for three years (whether your finances are organized or not).
Applying for a loan despite a debt
What does this mean for you who want to borrow money? Applying for a loan despite a debt to the Corona Guard is not easy. Many lenders accept a payment note, but do not owe the debtor. It is also against good credit practice to grant loans to those who have shown a great inability to pay their debts. Instead, people with debt to the custodian should prioritize moving out of the debt threshold rather than taking out additional loans. If you still want to borrow money, there are alternatives to regular loans from the bank.
An alternative to a regular loan is to take out a mortgage loan at a mortgage store. This means that you use a personal property as collateral when you take out the loan. It can be, for example, a jewelry, home electronics, musical instruments, etc. There are pawn shops in most major cities in Sweden. The loan is then repaid directly to the pawn shop. Then you get back the item you have left as security. If you fail to repay the entire amount, the pawn shop retains the item that has been left as collateral, and sells it. The debt is then settled.
Loan with creditor
If you have a debt with the Corona Magistrate, you can in exceptional cases apply for a loan with the help of a creditor. For example, it could be a family member or close friend. The creditor must be a person who has a high credit rating, with no debts to the bailiff and without payment remarks. The creditor must also have a good income that guarantees that the loan can be repaid. The creditor then stands as a co-signer of the loan and is solely responsible for repaying the loan. Keep in mind that the creditor can have major problems if the loan is not repaid, so this solution should only be used in an emergency.
Private loans or fast loans
A small number of lenders grant private loans to those with debt from the creditor and / or payment note. The price you have to pay is a much higher interest rate. It can differentiate up to 20 percentage points between loans to those with a debt balance with the creditor and those without unpaid debts. The easiest is to apply for a loan, be honest with your situation and have the lender make the assessment. For private loans or quick loans (also called SMS loans) with a note of payment or unpaid debts to the chancellor, the limit usually goes to smaller amounts, up to about USD 30,000.In order to borrow higher amounts than this, higher requirements are placed on the lender and larger loans with debt balance with the creditor are in principle impossible. To summarize what applies in the case of loans despite the debt to the chancellor:
- It is not a good idea to apply for additional loans if you have unpaid debts
- If you still want to borrow, there are alternatives such as a mortgage loan or a creditor
- You must be prepared to pay a significantly higher interest rate
In short, it is a bad idea to put yourself further into debt if you have unpaid debts to the Corona Prosecutor. On the other hand, if you only have one payment note and other finances arranged, it is no problem to take out a smaller private loan. On our website you will find lots of lenders who will help you borrow money on favorable terms.