A garnishment of wages is an unpleasant and negative experience for those affected, but it is the last chance for creditors to have access to the debtor’s income.

If you get a garnishment yourself, it means that you only get as much money from your salary as the law stipulates. Any euro that is above the subsistence level will then be used to repay the debt. In principle, a loan is no longer possible, but what can you do to still get a loan despite the attachment of wages?

How do you get a loan despite a garnishment?

How do you get a loan despite a garnishment?

You can normally only get a loan despite a garnishment if you have found a guarantor. Because most banks always make the condition that their credit rating is right when lending. Therefore, anyone who applies for a loan despite the attachment of wages does not actually have a good chance.

Because in this case the default is higher than in other situations, which the bank is reluctant to accept. In this case, therefore, only the guarantee can secure the payment. As long as a guarantor is solvent, the bank will also get a loan despite the garnishment. But you also have to take into account that the sum of the loan, the income of the surety is crucial.

What are the alternatives?

What are the alternatives?

Swiss banks are also unwilling to grant a loan to those who have seized wages, because these loans are always associated with great risks for banks. A Swiss bank waives the Credit Bureau examination, but you still have to prove your income and declare the garnishment.
But you can also contact a private loan broker who is there to broker a loan from a private person to a private person.

For this, the credit broker then receives a commission, which is usually one percent of the total amount of the loan. The main advantage of a private lender is that you can describe and justify your situation as a borrower. Because a complete and clear profile strengthens your own credibility, above all, a private lender is not dependent on rules of procedure. If it is a private loan, the debtor can even set the amount of the interest rate himself. If you can actually take out a loan in this situation, the total amount of the loan should not exceed 3000 USD and you should allow 16 to 17 percent for the interest rate. However, the loan should not be paid by one lender alone, because it is better if several private lenders raise smaller subtotals.

If the default risk is manageable for the individual private lenders, then they are also willing to take a default risk. Because even the lender can benefit from something, and normally you cannot reach these interest rates even on the capital market with a very high risk of default, especially not if they are only small amounts. In any case, you should be well informed about the options and conditions that must be met before deciding on an offer. You should also compare all offers to find the right one.