Saying Goodbye to Debt

We are going to discuss Debt-free in 6 simple steps

1. Make an overview of your creditors

Rank your debts according to cost and time. You should pay off the most expensive debt the fastest. If you do not have accurate information about your outstanding obligations, you must contact your creditors to request the correct information.

2. Collect your income and expenses

How much is your net monthly wage?

Do you have a car? New? Second-hand?

How much do you spend on energy, food, and other costs?

You can do this with the help of an online housekeeping book or with pen and paper.

Once you have a clear overview of your economy, there are two options.

• Seizure Free Foot

You may face wage garnishments if you do not pay your bills on time. A garnisher will then receive part of your wages or benefits (for example, a bailiff, creditor, etc.). However, you need money to live on. The amount you need each month to pay your fixed costs is the attachment-free rate. You must always keep this monthly amount, even if multiple attachments exist. They are all obliged to take your attachment-free foot into account.

The garnisher calculates how much you are allowed to keep each month. If garnishees do not have your details, they opt for a standard monthly amount. This amount does not always correspond to what you should get. So, make sure that the attaching party has all your necessary information.

3. Make a repayment proposal

\Your creditor’s main priority is to recover the money owed.

Exactly how long this takes is of secondary importance.





Keep this in mind when making a repayment proposal. Ultimately, both you and your creditor are on the same side.

If you can demonstrate that you are willing to go the extra mile to pay off your debts, you will come a long way in the negotiations.

If you have made a precise and well-arranged calculation and can submit a feasible proposal, don’t hesitate to get in touch with your creditor. You can do it by telephone or by email.

Support your arguments carefully and illustrate your situation with calculations and payment receipts.

The more reliable and relevant documentation you provide, the more likely the creditor will comply with your proposal.

4. Wait for the response from your creditors

Several things can happen after sending your proposals (by phone or email). What situations can arise, and how do you deal with them?

• Reactions from creditors

After you have sent a letter or email with a payment proposal to your creditor, you will receive a response.

• Creditors disagree 

If none of the creditors agree, your payment proposal may be unrealistic. Find out the reason for the rejection of your proposal and contact your municipality.

5. Pay off your debts

Paying off debts is often a matter of developing the proper habits and adopting an appropriate lifestyle. These little habits will help you reach your debt-free life goal. Your financial problems will diminish considerably, possibly even disappear altogether.

Getting rid of your debt is a long-term process, but being focused and consistent will contact you to your goal faster than you think.

6. How should I deal with debt?

The most crucial step to dealing with debt is recognizing that the situation you are in now is a problem and thinking about how you can solve the problem. Debt can negatively affect your life in many ways. Not only will your economic situation deteriorate, but it can also hurt your private and work life.