I have a total of 54,000 $ of debts, I am currently in the Netherlands and I have payment every week, because my payment varies with each week, I don’t know how to deal with repayment of loans, I want to use the snowball effect, but I don’t know how to write myself installment payments Fees imposed by banks:
- Debt 1 . 1.050 installment: I have to do it all because it is a parabank and it is not possible to pay in installments.
- Debt 2 . 2,000 installment: $ 100
- Debt 3 . 2,000 installment: $ 500
- Debt 4 . 4,600 installment: $ 380 (here I can’t change the installment amount, because it is Provident)
- Debt 5 . 5,000: $ 353.50
- Debt 6 . 32,000: $ 609
The order of paying off debts
At the beginning I will only mention, or rather congratulate you, that you decided to take the debts in your hands and went abroad to earn in a different currency, which will allow you to get out of debt faster, working in Poland for $, it would be much harder for you …
Certainly, debt # 1 is to be repaid first, because if you ignore this loan, you will receive prompts from the loan company any day. So pay her off first.
In that case you owe you: 5
I don’t know exactly what debt repayment system you mean, but I would do it in such a way that out of all six debts, I would be the first to repay the one with the largest APRC. That is the total cost of the loan.
If you arrange all 6 debts from the most expensive to the cheapest (as in the picture) and start paying them off in that order, you will stop the debt loop from tightening on your household budget.
So you will minimize the cost of all your loans.
I have a question about debt number 6, is it a loan or a loan? it seems to me that if the liability is for such a large amount, then it is probably a bank loan?
If the truth coincides with what I write, then you can apply for a credit vacation and thus, focus the entire amount of money available on paying off the most expensive loan that generates the most costs (read losses)!
It’s nice if you could get to such a state that all the obligations you have would only have to be repaid.
Not only is it easier to control one commitment then, you will quickly get rid of the burdensome costs of other non-bank loans!
To sum up, first try to repay the installment of the most expensive loan, which has the largest APRC, the next loan to be repaid, the second most expensive loan, etc., until you have a loan of $ 32,000 to pay back.
Every month, with each installment repaid, it will be easier for you and your wallet. You will definitely manage, I keep my fingers crossed for you!
Finally, I recommend a great e-book to a well-known debtor, Ms. Iwona Wendel. Mrs. Iwona paid her debts, which reached half a million USD. The experience and knowledge she gained at the same time poured onto paper and the publication was created: How to get out of debt and enjoy life.