Credit despite the pledge – cleverly solved – that’s the way it works.

It is not always good luck for you.

But is there such a loan at all? And how can he get started?

Cropping – a warning shot before the crash

Credit despite the pledge – cleverly solved – that’s the way it works

We all know financial problems. Here and there once an invoice can not be settled immediately, because other expenses were more important.

As long as compensation quickly takes place, this also does not pose a major problem. It only becomes critical when accumulate debts that can not be easily settled.

Then it comes quickly to over-indebtedness, which forces the affected creditors to act. If traded in the form of a pledge, this is particularly tragic for the debtor.

Because he can no longer approach his account and can have a maximum of the seizure tax exemption. If there is no P account, then this garnishee exemption must even be applied for.

All other funds are blocked until the debt is settled. No matter if the available money is enough or not.

For many consumers, the pledge stocking is therefore a warning shot, which should be taken seriously. At least now it is time to rethink and reorganize one’s own financial situation.

A loan despite a pledge – utopia or reality?

How can you settle debts better than with a loan? So definitely the mindset of many sufferers.

They hope, with the help of a loan to get the financial misery under control. The debts are combined and then paid in small installments to the bank.

All creditors can be served immediately and the garnishment is dissolved. As simple as the mindset may be, it is difficult to put that step into action.

In addition, the money from the loan is always transferred to the account of the borrower in a free use. By the pledge stocking the creditor would have immediate full access to the money.

A fair distribution would not be possible. Thus, when borrowing from a loan should be used in spite of Kontopfändung otherwise than would actually be the case.

In the best case, not the actual user of the money takes up the loan despite the pledge, but a second person. This would result in various benefits.

The second borrower

A loan despite Kontopfändung can be put into action only with a certain cunning. For example, if, as already indicated, another borrower takes up the loan. This then hands the money to the beneficiary, who can pay his debts with it.

But it is necessary for beneficiaries and borrowers to have a good relationship. It is also advisable to conclude a repayment contract in advance.

Otherwise, the borrower remains seated on the beneficiary’s debt and has to pay for it himself. The advantage of this action is revealed in the creditworthiness of the second borrower.

The most popular loans of our readers

In the best case, its account is not affected by a seizure. Once the credit standing is at a high level, the second borrower will be able to take advantage of all the loan offers.

He can thus select a very favorable loan offer, which is based on his interests. If, on the other hand, the debtor were looking for a loan despite a pledge of stock, it would most likely only be dubious offers that would intersect his path, which in the end would not even bring in the hoped-for money.

By contrast, there would be no problems with a solvent borrower.

Other loan options

It would also be possible to take the loan together with a guarantor, despite the fact that it has been pledged. If the guarantor is solvent, the Credit bureau would be balanced.

Only the payment of the money would have to be clarified. In some cases a cash payment is possible.

Mainly for small loans, which are taken on the spot. But also some direct banks offer this option.

In such a case, the borrower receives a check or a withdrawal slip, which must be presented to the post office. This then pays the money.

Another possibility would be the consumer loan at the dealer. This, too, will be possible only with a guarantor because of the plumbing and its negative traces in the Credit bureau.

You do not have to worry about whether the money touches your own account. This will not happen because it will pay for the purchase.

The disadvantage, on the other hand, is that consumer credit can not be used to pay the debt of the creditor.

Do not act lightly

Although one way or another is a good alternative to traditional borrowing, it should not be frivolous. A loan despite a pledge is always an exceptional situation, which must be handled accordingly.

Thus, the loan should only be applied for when it is used for debt repayment. For the purchase of luxury items who is not the right time.

These can again be envisaged when the debt has been settled and the financial situation of the person affected has improved significantly. Furthermore, the loan should only be taken out if there is a chance of a repayment.

Anyone who is unemployed or has such high debts that no country is in sight should not incur further debt through a loan. The situation would only get worse and leave a solution in the distance.

In such a situation, it may be more useful to seek debt counseling than to continue acting headless.

Boat Financing – Cheap loans in the credit comparison.

A boat or a yacht is a costly affair. Due to high maintenance costs such as maintenance, berths and insurance, leasing boats is a popular alternative to buying. However, if you decide to make a purchase and use financing, it is not easy for banks. Especially if more than just a small motorboat should be purchased, it is fast to high sums. Regional banks that specialize in car finance or real estate offer either no options or at least no cheap ones.

Who enables boat financing?

Who is led in the own house bank as a good customer, has realized various financing with the house bank and thereby always dutifully served the rates, which can have luck also with a boat financing. The internet has also allowed us to develop other good options in recent years.

Basic options:

  • Branch banks preferably own bank
  • Shipyard directly
  • Direct banks from the Internet
  • Financial service providers (many specialize in boat financing)
  • Credit portals providing loans from private individuals *

* Realistically, the chances of finding a private lender on portals like smava or auxmoney are very low. A private lender searches on the portals inquiries with which purpose he can do something. If a loan is needed for a car, for example, there are enough lenders who are familiar with the subject matter. For boats and especially for yachts, very few people have enough experience to judge this. Also donors from the credit portals do not like to lend money for things whose value they can not judge for themselves.

What data is important for a boat?

  • From which shipyard comes the boat / Which manufacturer
  • In which year the boat was made
  • Which boat types are concerned
  • Where is the berth
  • Which purchase price is required
  • What residual value does the boat have?
  • What is the boat used for?
  • How many previous owners has the boat
  • serial number
  • Pictures from the boat
  • Tax certificate if the boat is purchased abroad
  • Is there an original invoice?

As you can see above, for lenders, financing a boat includes a number of facts that are also known when buying a car. In addition, other roles play an important factor.

If you want to finance a second-hand boat, you have to submit an excerpt from the register. Obligatory are also proofs of the liability insurance and a comprehensive insurance, because it is always about high sums of money. The value of the boat serves as cover amount. A lower limit is usually already at 100,000 USD.

A residual debt insurance can lower the interest rate for boat financing.

What else interests the lender of boat financing?

An essential factor is the mooring. If the boat is to be berthed within the EU, the berth is not an exclusion criterion. However, if the boat is to be outside, many financial service providers fall away. Too big here is the risk for the lender. Also important is the information whether the boat should be chartered, even if this is to happen only temporarily. Because a third person is not always ideal with the boat, even due to lack of experience. The lenders therefore essentially distinguish between a purely private use or a commercial use of the boat.

Also important is what should be financed for a boat. Similar to the cars, there are different boat types. Not every financial service provider or bank allows boat financing for all models.

Boat types:

  • Motorized sailboat
  • Unmotorized sailboat
  • Inflatable
  • yachts
  • Motorboats
  • jetskis
  • Catamarans

However, yachts are actually a separate line of boat financing, because here the investment volume is far above that of other boat types. Financial service providers make a targeted distinction between yachts and boats.

Since the boat also serves as security, the boat financing is assigned with a purpose bond. Important for the lender is an objective judgment on the value and condition of the boat. Statements from the borrower and the seller play a minor role. An appraisal is extremely interesting for the lender. Thus, the real value is determined by condition, age, brand and equipment and the lender knows with what value the boat can serve as collateral.

Tip from the editor

Those who bring equity to finance usually have an advantage in forming interest. So it pays to put aside a little money in advance. Who then introduces himself to the lender, can get better conditions.

Credit comparison also important for boat financing

Due to the large sums involved in boat financing, just a few percentage points in interest rates can have a major impact. An online loan comparison is absolutely recommendable from this point of view. Our calculation example should show what effects a cheaper credit can have.

Sample calculation

  Credit A Credit B
loan amount 100,000 USD 100,000 USD
running time 120 months 120 months
Effective interest rate 6 percent 4.5 percent
Monthly Rate 833.33 USD 833.33 USD
Interest per year 6,000 USD 4,500 USD

The savings per year is therefore at least 1,500 USD, even if ultimately only 1.5 percentage points are saved in the annual percentage rate.

Credit for terraced construction – fast & low-interest from the net.


On your own house a private terrace, which is sometimes not so easy. With a loan for terrace construction, these funds can be made available.

Because a terrace costs a lot of money and requires investments of several thousand USD.

Why a terrace?

Credit for terraced construction – fast & low-interest from the net

Terraces are a practical matter in every season. In the warm summer months, the solid exterior surface can complement the living space and help to save significantly more time in the fresh air.

If the terrace is also covered, it can be used in the winter months as protection for plants that should overwinter. In addition, it offers an optimal storage space for garden furniture and other utensils.

If the terrace is on top of the house, no steps need to be taken to reach the outside. Not only elderly or handicapped persons appreciate this advantage.

Terraces are therefore small all-rounders, which not only upgrade a property, but also bring a high benefit.

Analyze costs and look for suitable loan for terraced construction

In order to be able to look for a loan for terrace construction in peace, it is important that the costs of terrace construction are analyzed in advance. Should the terrace be built on your own?

Or is a company commissioned? Which materials are needed?

And what additional costs such as decoration or redesign of the garden must be expected? The terrace construction is usually a large project, which concerns the entire garden.

The terrace reduces the size of the garden so that it has to be redivided or created. Shrubs are planted, lawns sown and beds newly created.

These additional costs should be included directly in the loan for terrace construction, so that ultimately an overall project can be created, which can be implemented quickly.

Compare different offers

While many loan offerings might be similar at first glance, it is important to make a comparison before taking on a loan for patio construction. The differences are usually in the details and therefore do not show up at first glance.

Nevertheless, they can be so serious that they massively affect the repayment and the cost of the loan. If you do not compare, you will not be able to tell how good or less good the offer actually is.

When comparing, it is important not only to look at the effective interest rate. This is important when it comes to costs.

But the repayment, which usually takes many months or even a few years time, must also be mastered well. And so it is important that repayment can be as flexible as possible.

Use comparison computer

For the comparison of the credit for terraced construction a comparison calculator should be used. He shows all the relevant offers and presents them cleverly.

The terrace can be financed with a loan with free use or even with a real estate loan. Free use is usually the better choice as it is not a dedicated loan.

The borrower can freely set the loan amount, no matter how expensive the terrace construction ultimately is. In addition, no evidence of the expenditure must be provided, as would be the case with the real estate loan.

60000 USD credit – from 550 USD monthly rate – credit 60000.

Sometimes you have big dreams: for example, you want to buy a high-quality new car with extras, make a trip around the world or perhaps renovate your house or apartment from the ground up. In such moments, smaller loans are no longer enough, you need a larger sum – for example, a $ 60000 loan .

We would like to show you the conditions on which you can get a loan of 60000 USD amount from whom.

Example: get 60000 USD credit with 84 months maturity

If you are interested in a loan of 60000 USD, it is in the nature of the matter that you aim for a longer repayment period, because you keep so the monthly installments in an affordable height. In principle, you could find appropriate loans with a term of twelve to 144 months.

60000 USD credit – from 550 USD monthly rate – now with condition check

For this example, therefore, the average of 84 months and seven years was chosen.

The monthly installments with a loan of 60000 USD height begin with approximately 781 USD (post office bank) and range depending upon offerers up to well over 800 USD.

In general, Postal bank, with an APR of 2.59 percent, offers the best value with a 60000 loan with a 7-year term. However, you will only receive the corresponding value if you have a suitable credit rating (credit repayment ability).

The interest rate corridor for the loan of $ 60000 with a maturity of 84 months is up to 7.59 percent at Postal bank. For other banks, the interest charge may even be significantly higher:

For example, with Credit bankive you would need to budget for this loan at 10.99 percent in the worst case scenario.

As a comparison: 60000 USD credit with 144 months (12 years) term

780 to around 850 USD monthly rate could be a heavy burden for you. As a comparison: If you decide on a loan of 60000 USD in height with a term of 12 years or 144 months, you can reduce the installment charges to around 522 USD.

The corresponding offer comes from extra-credit and in the best case would have an effective annual interest rate of 3.95 percent. However, the interest rate corridor in this case goes much further and would go up to 15.95 percent.

The selection of banks is also significantly lower at this term. The only alternative would be the General Public Bank, whose best possible monthly installment in this case is already around 610 USD.

Tips for the best interest rate with a 60000 USD loan

The above explanations show how important it is to obtain the best possible interest rate on a loan of $ 60000. Ideally, you have an excellent credit rating that can easily prove your high income.

If this is not the case, ideally you decide not to take the loan on your own. A second person helps you a lot with the interest rate.

Alternatively, you could ask a guarantor to help you borrow. If you have collateral like a property, you also offer it as a guarantee to get the best possible interest rate.

quad in competition – insure a mortgage loan


Loan insurance and the practice of a risky sport: the quad in competition

Sport at risk: the quad in competition

Sport at risk: the quad in competition

The quadricycle, or quad, is a motorized all-terrain vehicle increasingly used as a leisure vehicle. His practice has become a sport in itself and gives rise to high-level competitions.


Real estate loan insurance

Real estate loan insurance


When you apply for a home loan, the bank will require that you take out loan insurance to guarantee the loan and be certain to receive the repayment of the credit despite the occurrence of a risk situation. Loan insurance enables the insurer to cover the loan due dates in the event of the death, disability or incapacity of the borrower. In the case of quad practice in competition, the insurance offered by the bank is not necessarily the most suitable. Prefer the “insurance delegation” because it offers the borrower the possibility of benefiting from a coverage adapted to his individual profile contrary to the “group” contract of the bank which is standard insurance.

Quad in competition: benefit from the most suitable loan insurance contract

loan insurance

The bank may be hesitant to insure you because, by competing quads, you are riskier than the average borrower. If you want to borrow and practice quad in competition, it is recommended that you compare different offers of insurance quad loan to find the individual insurer who will offer the best cover to protect you.

By using a broker specialized in loan insurance, you put all the chances on your side to benefit from the loan insurance that best meets your specific hedging needs. The Bertram broker can advise you on the best choice you can make in terms of quality of guarantees and insurance prices.

What is the cost of mortgage loan insurance?

The financial institution from which a home loan is contracted will probably offer to subscribe to a group contract, that is to say, a loan insurance from one of its partners.

Calculation of the cost of loan insurance


If the offer of credit he offers is particularly interesting, it is probably that he practices a significant margin on the cost of loan insurance is linked. Nothing obliges you, however, to accept his offer. To benefit from a competitive mortgage insurance cost, the best is to go to the side of the insurance companies and to play the competition.

Insurance Loan on Remaining Capital or Total Credit Amount

Insurance Loan on Remaining Capital or Total Credit Amount

The cost of mortgage loa insurance that will be proposed is calculated either as a percentage of the total amount of the loan or as interest on the credit, which is calculated on the capital remaining due, the cost of insurance mortgage loan is generally constant. The total cost of home loan insurance can be a significant part of the total cost of credit, sometimes as much as ten percent.

Simulation, Quote, and Comparison of Credit Insurance


Cost of loan insurance according to the borrower profile

Cost of loan insurance according to the borrower profile

Depending on the situation, profile and funded project, the most appropriate insurance will be different. Of course, the cost of home loan insurance will vary accordingly. It is therefore important to determine the relevance of insurance that will cover the risk of temporary incapacity for work or loss of employment. These guarantees are optional unless the borrower’s profile requires them to be effective.

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Hence the importance of choosing loan insurance carefully!

Hence the importance of choosing loan insurance carefully!

It should also be borne in mind that while some companies agree to insure people over 65, most do so at a higher than average mortgage insurance cost. On the other hand, some others charge preferential rates for young borrowers under 35 years of age. The best is to compare the offers and present them to its various interlocutors, in order to compete and lower the cost of home loan insurance.

SMS Loan for Women

At first glance, it might seem that mostly men are applying for loans. Perhaps this may surprise someone that more than half of non-bank loan applicants are women.

Does anyone offer a credit product focused solely on the more tender part of the population? Is there an SMS loan for women, for example? What are the parameters and what is different from the loan for all?

SMS loans

SMS loans

The general features of SMS loans are speed, availability and versatility of use. You get a small non-bank loan quickly, without unnecessary formalities, and you can use the money for anything. Typically, you can borrow up to CZK 5,000 on your first application, and more than once. You repay the loan in one installment within 30 days of applying for a loan (or for a shorter period – as you choose to use an online slider).

Equal conditions

Equal conditions

It has to be said that the conditions for all loans are the same for both men and women – there is no gender equality. The condition is over 18 or over 21, in some cases debtors’ registers are checked, and in some cases, proof of income is required.

When there is not enough income

When there is not enough income

However, in the online form you must truthfully state your earnings data. There may be a problem for some applicants or applicants – if you are just unemployed, retired or, for example, on maternity leave – the lending company will not provide you with a quick loan.

Loans for women on maternity leave

Loans for women on <a href=maternity leave” />

If you are a woman on maternity leave and you need to borrow money, you need to contact companies that lend to women on MD. These companies are benevolent to the fact that you do not have a regular income from an employer. We can then exaggerate their credit products as SMS loans for women on maternity leave (abbreviated as “MD”).



Providers of these loans include, for example, VataOnline, sro with its loan of the same name. With it, you can borrow up to 5000 CZK for 1 – 35 days and thus bridge the acute financial shortage.

What to watch out for

What to watch out for

However, it should be borne in mind that a microloan should only be an emergency solution, not a rule for family budgeting. Make the best use of borrowed money and be sure to get a family budgeting job in the future.

Loans on maternity leave – “Loans on MD” – information, advice

Do you care for the baby and often do not have the maternity money? In a similar situation, there are other moms who have to borrow cash from their relatives or acquaintances as many times. But not every woman has the support of her family or she is even a single parent. At this point, loans for women on maternity leave or people’s “loans to the MD” can help.

What are their parameters, advantages, disadvantages and risks?

Non-bank loans online

Non-bank loans online

As a rule, women on maternity leave do not reach normal bank loans because of low income. Although they are cheap and relatively safe, the bank thoroughly examines each applicant and, without sufficient income, the chance of obtaining a bank loan is minimal. So we have to look for loans for women on the MD rather in the non-banking part of the financial market.

SMS loans to parent online and immediately

SMS loans to parent online and immediately

These loans are found mostly by mothers on the Internet, where they are offered under different names (most often as SMS loans ). These are smaller loans, usually up to CZK 5,000 or CZK 10,000; you can choose the loan amount and maturity period, usually up to 30 days. It should be noted that many of these loans are intended for applicants with permanent employment and demonstrable income, but some products in this category are also intended for people with irregular or low income. The money is paid out to the account immediately, in some cases it is possible to send the amount to the postal order.

Loans on parent without registry, without proof of income

Loans on parent without registry, without proof of income

The parent loan bonus is that women handle them online so they don’t have to go anywhere with their baby and can stay in the comfort of their own home. Therefore, it is not necessary to prove “paper” receipts confirmation, it is sufficient to fill in the information about your income and expenses in the online form. It should be noted here that the data entered on the form must be truly true if the applicant or applicant wishes to “improve” their income data in any way, threatens to commit credit fraud. But low-income people can also get an SMS loan, and even a negative record in the debtors’ registers may not even be a problem. Each application is assessed individually.

Loans without fees – the first free loan

Loans without fees - the first free loan

Although loans in this category are quite expensive, you can also find a free loan. How is it possible? Some companies offer the first loan free of charge – that is, completely free of charge. A woman simply returns as much as she has borrowed. However, care must be taken to ensure that the maturity period is not exceeded – if the non-bank company is exceeded, relatively high fees are charged.

Don’t forget what?

With maternity leave, non-bank loans for mothers are at risk of getting the woman into deeper financial difficulties because of her failure to repay the loan on time and pay her additional charges. These fast loans are also linked to higher interest rates, APRs and sanctions. However, all fees and possible penalties must be legally indicated on the credit company’s website and in the credit agreement, before a loan is requested, all the circumstances and risks should be considered and considered.

The experience of others in the discussion on the Internet

The experience of others in the discussion on the Internet

Before negotiating a loan or finding the most appropriate loan for women on the MD, it is worth reading the discussion on the Internet. Mothers will learn about other women’s experiences or find tips for a proven and safe non-bank loan. All you have to do is enter a “women’s loan for MDs” into the search engine.

How to get a cheap payday loan?

You have a nice project in mind but do not know how to finance it? Why not turn to payday loan? Filled with benefits, this type of consumer credit helps you finance your dreams, without breaking the bank. Check out our tips for getting a cheap Payday loan.


Payday loan, what is it?

Payday loan, what is it?

In France, the Payday loan is a type of consumer credit. Its characteristic is that it does not finance a particular project, but that its purchaser can finance what he wants, without justifying his purchases. It is therefore an unallocated loan. The Payday loan is a credit agreement contracted between a borrower and a financial institution over a period of time: usually from a few months to a maximum of five years.


What does the Payday loan finance?

What does the Payday loan finance?

It is not intended to finance a specific purchase but to enable the borrower to meet all expenses concerning both unspecified consumer goods and services such as expenses following family events, medical expenses, study fees, taxes, renovation costs, travel, etc. In practice, the funds are paid into the account of the borrower who disposes of them as he wishes.

However, different Payday loans exist depending on the needs of the borrower: Payday loan for work, Payday loan leisure, Payday loan auto or Payday loan cash. It will be essential to discuss projects with his advisor so that the latter directs you to the Payday loan most suited to your needs.


Payday loan: what the law says

Payday loan

The law protects the borrower. The rate applied for a Payday loan is higher than an assigned loan obtained in a bank but lower than for a loan taken out at a point of sale (intended for the purchase of a good or a service, also called “Installment Purchase Financing” or “Affected Loan”). Beware however, the rules of acceptance are often stricter, the borrower does not have to justify the destination of the borrowed money. Up to € 75,000, this type of loan is subject to the code of consumption and allows in particular a prepayment without fees, unlike the mortgage (penalty of 3% maximum).


Get a cheap Payday loan

Get a cheap Payday loan

Unlike other credits, you do not need to mount a concrete file to access a Payday loan. So, you can finance your purchases, your unforeseen events, your projects, and even your trips without having to justify the purpose of your loan application. Thanks to the arrival of the internet, getting a Payday loan today is easy. The Internet makes it possible to reduce the operating cost of companies and therefore to offer products that are always cheaper. This is particularly the case for Payday credit agencies that offer highly attractive loans to finance your projects.

But beware, it is nevertheless essential to compare the offers to obtain a cheap Payday loan. Competition has prompted lenders to offer a low call rate for Payday loans. Especially as compared to revolving credits or earmarked credits, the interest rate of a cheap Payday loan remains more advantageous, at least in most cases.

With a cheap Payday loan, there is no bad surprise. Since the interest rate is fixed, your monthly payments stay the same throughout the loan. In addition, the repayment term is known in advance. Some financial organizations even propose to their clients to defer one or two monthly installments a year in case of a hard blow. On the other hand, it is also possible to pay off your Payday loan if the finances allow it.


Compare to get a cheap Payday loan

Compare to get a cheap Payday loan

The watchword you’ll understand is: compare. Many lenders have online comparison tools that are non-binding. Some sites even directly display Payday loan comparison charts and rank the most active names in the Payday loan market.

And do not forget that as soon as you meet the conditions for granting a Payday loan, you can play the competition between different financial organizations. You can then send your application to different banks to receive several loan offers and choose the most competitive.

The contractual offer of the bank must contain the amount of the credit, the fixed or variable interest rate, the cost of insurance, the constant or flexible maturities and the filing fee. This offer remains valid for a period of 30 days during which a lender can not revert to the loan terms it offers. The law then proposes a period of two weeks so that the borrower can think about the offer.

Tips for Lightening your Debts


The elimination of debts is difficult. Sometimes you will feel good about it and sometimes you will feel as if you are trying to get out of a hole that keeps getting deeper and deeper. Money is often perceived as a simple matter of numbers and mathematics. In personal finance, money is more about income, debt and budgeting, however, money is a very psychological thing. It provides you with security, comfort and, in a way, happiness. The key to getting out of debt is not to live beyond your means, but this is a difficult thing, with all the ways that can baffle you from your goal.

The first step to getting out of debt is to stop getting into debt

The first step to getting out of debt is to stop getting into debt

In other words, cut your credit cards and cancel all your lines of credit. Since you are already in debt, there is no reason to maintain the use of credit. Credit cards, in general, are a way for businesses to take advantage of your debts. Of course, credit cards can be convenient and can provide you with money at any time as well as travel benefits, but none of these benefits are fundamentally essential. If you are in debt, credit is more of a burden than a convenience, so get rid of it.

The second step is to start saving


It’s much better to have a savings account where you can dive into the times when you really need it than to keep a credit card for that purpose. This may take a little while, but saving a small portion of your income each week will help you stay out of debt once you have paid what is due. These savings would be used exclusively for emergency situations, allowing you to get out of trouble if you are really at the bottom of the wall. It would probably be wise to keep this money a little out of reach, for example by keeping your money in an accessible savings account that is not linked to a debit card. This way you will have money when needed, but you will not be tempted to use it for purchases involving some impulse.

The next step is the most difficult. Once you’ve stopped getting into debt and have a comfortable cushion from your savings account, it’s time to attack your debt repayment. One of the most rewarding ways to accomplish this task is the snowball method. This strategy consists of paying down the smallest debts first, while paying back the small amounts of the largest debts. Once you manage to finish with the smallest amounts, you can fight against the biggest. There are several basic steps related to the snowball method:

– Make a list of your debts in ascending order (smaller to bigger).
– Set the amount you will pay for each item on this list.
– Pay the minimum amount for each debt.
– Use all available portions of income to repay smaller debts
– Once you have repaid a debt in full, add that same amount to the next smaller debt.
– Repeat for each item on the list

The theory behind this method is that once you have paid off your smaller debts, the amounts that were later used for these small debts accumulate to group together into a much larger amount that will help pay the larger debts. Although it will still take some time to pay off all of your debt, the results are instantly visible and will be very rewarding.

If the snowball method is not for you, there are other ways to focus on paying off your debts


As mentioned earlier, the key to success in personal finance is not to live beyond your means. In terms of debt repayment, you must for all practical purposes earn more than you spend. If you are not able to achieve this goal, you will have to curb extravagant spending by being more frugal. Sometimes just bringing a lunch to work instead of eating out at a restaurant every day can save you a lot of money.

You can also get another job (without the expense of other factors in your life, of course) to provide you with extra income to pay back what is owed. In addition, selling things that you no longer use can help as well.
Do not put the debt back until tomorrow. It’s time to rebuild your personal finances if your debts choke you. Taking charge of your responsibilities will be a great stress reliever and your success will give you the motivation to stay out of debt in the future.