Debts can be a heavy financial burden, especially if you have several debts or if you find it difficult to pay them off. Fortunately, there are a number of ways to pay off your debts: First of all, you can pay off your debt with savings. The interest you receive on your savings account is much lower than the interest you pay on the loan. So you save money if you use part of your savings to pay off the debts. But keep a buffer on your savings account to absorb any financial setbacks. We recommend you to find out more about geld lenen met negatieve bkr
- In addition, you can pay off your debts faster if you have extra money at your disposal. This can be your holiday pay, but you can also check if you still have things in your house that you can sell.
- Unfortunately, it is often difficult or impossible to have an extra amount of money at your disposal. But many people can save a lot on the monthly costs. Think for example of taking out cheaper insurances, cancelling subscriptions, doing cheaper shopping and driving less. By spending less, you have money left over to pay off your debts.
- Another option is to pay off your debts. Loaning money from another lender can in many cases be more advantageous. In this way, you can save monthly on the costs of your loan.
- Attention! Some debts cannot be redeemed free of charge. So always check the conditions of the loan if you want to repay extra.
Paying off debts? Make a financial plan!
With the tips above, you can repay smaller loans quickly. If you have more or larger debts, then it is wise to start with a financial overview. If you know how much money you receive and how much you spend on monthly expenses and groceries, you can also see how much money you have to pay off. In this plan you can also see where you can make savings.
Paying off debts with priority
On the basis of the financial overview, you determine how much you can repay each month. You divide this money between the debts. If this is possible, give priority to which debts you repay first. Which debts have priority depends on your situation:
- High priority debts are rent arrears and mortgages and the bills for energy, gas, water and health insurance, for example.
- It is better to pay off debts with a high interest rate first, because they are the most expensive.
- Paying off small debts first gives more overview