in Ecuador, two out of three people are in debttheir income does not allow them to cover all their debts, according to data from Asobanc and Aval Buró.

“Many people want to pay but can’t, because their economic situation has changed since they took on debt until today“says lawyer César Coronel. However, the expert reminds that the Ecuadorian legal field is considering several alternatives for getting out of debt; one of them is financial relief.

As determined by the decision of the Committee for Financial Policy and Regulation, those who have microloans, production SME loans and educational loans with arrears With maturities from January 1, 2020 to June 30, 2022, I can refinance my debts with banks, cooperatives and joint ventures by March 31, in a way that quotas are smaller and can be afforded.

Those who meet the conditions for refinancing their debt will have:

• Shelf life up to 10 years.

• A total grace period of 3 years of non-payment of principal or interest.

• No collection fees or legal fees will be added.

• A risk rating of “A1” will be assigned, which enables access to new loans.

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Other alternatives for getting out of debt

Organic law on humanitarian aid

This option, available until June 22, provides access mediation procedures with all creditors to reach a payment agreement that allows the creditor to collect what he owes and the debtor to pay what he owes. The advantage is that you negotiate with everyone at the same time and that, while the conciliation process is ongoing, creditors cannot sue or initiate enforcement actions.

Nothingness

There are debts that are void from their origin. “At defensadeudores.ec we are aware of cases of forgery of mobile phone rental signatures that the affected person found out about when their account was blocked or they received a notice of forced action. It is a void debt that should not be paid,” emphasizes Coronel.

Recipe

There are legitimate debts that the creditor cannot collect through the courts because the time specified by law has passed. “If the debt prescribed, it would not have to be paid legally; they could not sue him under that concept; “Whoever sues cannot collect,” says lawyer Jack Sotelo. According to Article 2,415, the statute of limitations begins after five years for enforcement actions (court proceedings) and ten years for ordinary actions.

there is an some debts that do not prescribe in any casesuch as support and inhumanity.

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Tips for maintaining a good credit history

1. Don’t accept credit cards anymore than you can bear. It is preferable to limit yourself to using two cards as a tool for planned spending. If you want a loan, it is advisable to ask your bank for other options with lower rates.

2. Avoid being tempted to buy products or services on credit that you don’t really need, motivated by the fact that they have a good discount or because they are offered with credit terms for three or six months without interest or in “comfortable monthly installments”.

3. Plan your expenses. Think about what to buy and how you will pay for it on the scheduled date. Before applying for a loan, think about how much you can afford. Make a budget.

4. Schedule reminders on your mobile phone about payment dates or authorize your bank to debit your account, making sure you have the money to debit.

5. Save at least 10% of your income until you have savings equal to six to twelve months of your monthly income as a contingency fund to meet your obligations in an emergency.

How to get rid of credit card debt

Stop using your credit cards. Even if you have more than one credit card, it’s better not to have them close at hand for long periods of time. If it can no longer free you so much, just have one in your wallet.

Don’t let the debt keep growing. Continuing to pay “as much as you can” is not a good decision, as the unpaid amount continues to accrue interest and consequences.

War economy. The goal should be to pay off the debt. For this, it is necessary to adjust the family or personal budget to the maximum expression.