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Reduce debts to make money

Credit card debt

Reduce debts to make money

I spoke in the last post about preventing debts. In this post I will go into more detail about where exactly the differences lie in these loans. This is important to know because there are also good debts. Good debts? Yes, there is, actually. So I invite you to read on.

Consumer debts

These debts arise when you buy things on credit. These are the classic debts, the bad ones. Consumer debt includes, for example, instalment loans. The car, the television, the smartphone, the game console, the home furnishings – everything can be bought with an instalment loan. As I have already mentioned – this is a fallacy. Because you don’t buy the things, they’re only lent to you for use. And you’re paying for it. Because the owner is the lender – in other words the banks (mostly). Until you pay the installments in full, things don’t belong to you. So remember:

Those who incur consumer debt always pay a price that is far too high.

The world today is extremely complex. In the past, if you only had to compare the conditions for a liability insurance, this undertaking almost borders on a doctoral thesis just to see a comparison. Therefore the topic of money should not be neglected.

If banks or insurance companies advertise that you should buy today and only pay tomorrow, then these are “bad loans” – bad debts for you. Even consumer companies which mainly sell electrical goods such as game consoles, televisions, computers, coffee machines etc. do not hold back with such promises. Yolo is often quoted as well. Yolo = you only live once I don’t think so.

You live every day – but only die once!

Yes – you live every day, but only die once. If I keep in mind that I have to live with debts every day, that I have to laboriously work off these debts every day – day by day, month by month, year by year – then I do not want to have debts. Because then my life is only aligned with the loans. If you already have 50’000 francs (or euros, dollars, whatever) in debt, then calculate how long it will take you to pay off these loans. Would you like a small sample calculation?

Example calculation credit debt

This small sample calculation only serves to show how much the monthly available amount is without credit, with interest in the best case and interest in the most expensive case. All costs – as well as gross and net wages – are average costs based on Internet sources. Everyone can get an idea of the average costs and research on the net.

monthly amount EN

This simple comparison may also explain why many people have to take two or three jobs. If at the end of the month the disposable amount is close to zero or even in minus, there is not much else to do but generate more income.

I had a consumer loan once in my life. When I realized what that meant every month for 5 years, I took another job to get away from the loan as quickly as possible. Within 6 months I had gotten rid of the loan and every month I had a proud amount – at my disposal.


The promises of credit institutions or banks that one should “buy today and pay tomorrow” are always at the expense of the borrower – that is DIR. Therefore there is only one thing to say very clearly and unmistakably – LEAVE THE FINGERS OF CREDITS!

Reduce your current debts as quickly as possible. When I talk about debt, I always mean bad debt – i.e. instalment loans, consumer loans, small loans.

Now I have talked a lot about bad debt and little about good debt. The reason is clear – as long as bad debts stick to you we do not need to talk about good debts. 🙂

But there is more to read about good debt in the next post. If you don’t want to miss anything, sign up for the newsletter.

Wir sind Claudia und Thomas und möchten mit unserem Blog und unseren Tipps Anregungen geben und die Fantasie ankurbeln.

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