Debt is easy. Your budget is quickly overdrawn: when the next vacation is coming up or new furniture for the first apartment is purchased. Exceeding the budget in the short term is usually not a problem. However, if debt becomes permanent or gets out of control, it has negative consequences. If you want to live free of debt, you need a precise overview of your own finances and an idea of which expenses fit into the budget and which do not.
Analyze your own situation
You can get a good overview of your own finances by comparing your regular accounts with your accounts. Regular inputs are, for example, salary, maintenance, pocket money from parents or student loan. If you add up this income and subtract your regular expenses such as rent, electricity or radio fees from it, you know how high the budget you have at your disposal each month. You can easily keep an eye on your account movements via the app on your smartphone or with the online finance manager on your PC. Here, graphics also give you a quick overview of your financial situation.
Keep a clear head on high debts
With high levels of debt, it is important not to stick your head in the sand. Even if the mountain of debt seems huge, it is not advisable to become rigid. The best way to deal with the flood of letters, claims and reminders is to sort the documents and check your own financial situation. You can use a cost statement to decide where you can save money. Because you can use the amount that is left monthly to save, pay off debts or for other expenses.
Debt counseling centers – if the insight is missing
Anyone who has lost sight of the situation and does not know whether there is something left every month or what amount of debt to pay off is best to contact a debt advice center nearby. Many non-profit associations, associations and municipal contact points offer advice to those seeking advice free of charge. On behalf of the Federal Ministry for Family, Seniors, Women and Youth, the Debt Counseling Forum maintains the official directory of all debt counseling centers in Germany. Here you can find out all about the topic and find a contact point near you.
Debt restructuring as an alternative
If you are annoyed by many different small loans or who have been using your overdraft facility for a long time, you can inquire at your bank about cheaper alternatives. The first step towards clarification and possible debt restructuring is competent advice, which you can get from your Best Bank.