According to the report of the debt collection company Crookes, 71% of Poles believe that the reason for problems with repayment of liabilities is too low remuneration. 43% of respondents indicate carelessness and above-standard life as the cause of the problems. And carelessness is the reason for the problems of Gerald, the hero of our report. The man fell victim to the debt loop and for a few years celebrated on November 17 he will not celebrate his Debt Day.
Our hero avoided the fate of over 2 million Poles who got into financial problems and their debts were transferred to debt collection. The sum of cases accepted by Crookes for recovery in the first half of this year reached PLN 4.5 billion, and the average value of a single liability pursued by this company – 4.6 thousand. zł. Data from BIG InfoMonitor indicate that the average outstanding debt of a Pole exceeds 15.6 thousand. zł.
January 2010 – Gerald is doing well
Gerald is single. He is 30 years old, works as a salesman, selling advertising space in one of Polish publishing houses. He was employed under an employment contract, but a large part of his salary are bonuses and bonuses for implementing sales plans. His earnings twice exceed the national average, thanks to which he receives a salary of 5,000 every month. zł. High work efficiency makes him forget that his fixed salary is only for 2,000. PLN net, and the remaining amount are bonuses and bonuses. He lives in Warsaw, in an apartment he inherited from his grandmother. Thanks to high earnings, he managed to collect several thousand savings, which he placed on the bank deposit. He decided that they would be a security in case he lost his job.
March 2010 – Gerald gets a credit card
His credit adventure begins innocently. First, as a reward for a client internship, the bank grants Gerald a credit card with a limit equal to his monthly net income. Gerald accepts the card without much thought and finances the purchase of a trip to Majorca. He is glad that he does not have to pay back the card right away, and the bank will require that he repay only 5% of his debt every month. He does so too, leaving the repayment for later. He believes that PLN 250 of the monthly installment will not affect his monthly budget.
June 2010 – Gerald makes occasional shopping in installments
Returning from vacation, Gerald dreams of buying a new TV. I find a large-screen LCD TV worth 3000 PLN, which I buy in installments. The shop receives a proposal to divide the purchase into 20 installments, to which interest will be added monthly in the amount of 1% of the purchased equipment value.