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Currently, the issue of debt is of paramount importance given the financial crisis that the major economies of the world are going through. Spain turns out to be one of the most indebted countries within the European Union, however, its debt figures are not higher than those recorded by the United States and the United Kingdom. That is why there are debt management plans, the same are a service provided by financial institutions to their users, the purpose of these plans is to eliminate all debts in established time limits. Now is the time to consolidate.

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Once the plan that best suits the debtor’s payment capacity has been established, the company that manages the plan will pay a certain sum of money according to a term determined by the different creditors. In this way, the debtor’s payment is distributed in several percentages of money, directly proportional to the debt owed to each creditor. The durability of a debt management plan is usually prolonged, however its duration depends on:

  • Type of debts
  • Size of the debt
  • Monthly sum that can be paid

The financial crisis in Spain generates a great concern within the European Union, with special connotation of over-indebtedness. This situation worries because everyone loses, also it can be said that it is an emerging problem. At a general level, it could be said that in Spain there is a lot of liberalization but little regulation, this combination means that the outlook is inciting to indebtedness. It is especially the domestic economies that show the most indebted due to poor family budget planning.

In addition, the legal vacuum of Spanish legislation does not have instruments, through which the debtor can propose a negotiation of the debt. The legal vacuum focuses on not having planned instruments or a model of debt renegotiation. The time of the debt management plan will depend on the combination of the 3 characteristics mentioned above. A short-term management plan is from 3 to 18 months, and a long-term management plan estimates a process that may exceed four years. Before going to a debt management program, it is convenient to analyze the personal financial situation and to that extent to plan if you will have the ability to sustain the payment of the debts for a longer time. This is an essential requirement to be able to carry out a program for debt planning.

In the Spanish case, the emerging free trade market of the European Union gave rise to years of economic development. Thanks to this union, the margin of participation and commercial exchange of the State was broadened. The regional integration of the European Union has given support and stability to Spain, in that it has facilitated and improved the commercial relations of this country with other regional blocs of the world.