The debt collection firm's best advice: How to become debt-free in 2022
Many Danish families feel hampered by poor finances, with expenses outstripping income. There are many reasons for this, ranging from lack of income, unfortunate financial decisions or debt - and often expensive debt.
As a professional authorized debt collection company, we see it as our social task to help, guide and advise our customers and the world around us to a better economy - and how to get better through their financial challenges.
In this section, we have gathered 5 good tips on how we as a debt collection company believe you can quickly become debt-free - so you are less hampered by your finances in 2022.
1. Prioritize your most expensive loans first
Almost all Danish families have debt; either in the form of a car loan, home loan or a consumer loan. But if you are among the many Danes who also have a consumer loan in the form of a quick loan (also called an SMS loan) - and feel financially pressured in everyday life - it is this type of loan that you should consider reducing first.
Because payday loans are often expensive every month - and if you have loans, you should prioritize reducing the most expensive loans first, which are often payday loans.
However, if you do not have a quick loan, you should look at which other loans should be reduced first and fastest.
2. Engage in a dialog with your creditors
Are you struggling to meet your debt obligations? Don't worry - you are not alone.
Our recommendation as a debt collection company is that you contact your creditors - your bank, private companies, the public sector, your family and any debt collection companies - to whom you owe money. Because even though you may not currently have the opportunity to pay off your debt, and therefore difficult to start a dialog - try anyway.
Many creditors will be sympathetic to your situation and you may have the option of a provision, interest freeze or a manageable repayment schedule; engaging with creditors and debt collection agencies is always the way forward - no matter how much money you have to repay.
3. Cut unnecessary spending
As a modern family, you have a lot of fixed and recurring expenses, from Netflix subscriptions to phone subscriptions, insurance, rent and the like.
But have you recently considered which ones you could cut back on - or maybe cut out altogether? Most people will be able to cut a streaming service, find a cheaper mobile phone plan or maybe start looking for a cheaper place to live?
Remember, even a few hundred euros a month can make a crucial difference to how quickly you can get out of debt.
4. Make a budget
Our debt counselors often find that many Danes with debt have no budget - and that's a shame.
Without a budget, you have no overview. And without an overview, it's hard to know which expenses you can cut back on - or even do without.
With a budget, you can find out relatively quickly where you can save - and what you actually spend your money on. If you don't have a budget, you might be surprised at how much it can help you.
5. Seek help from professionals, friends or family
For many people, their financial situation and their debts can be confusing. It can be difficult to see beyond their financial obligations. At the same time, one does not know where to start.
Don't despair! Luckily, there are many people who can help you with your financial challenges, starting with your social circle, friends or family.
If you don't want to involve your loved ones in your finances, contact a professional, accountant, bank or debt collection agency (if you are in debt to them).
You will often find that even with a few improvements and a better overview, you will have more freedom in your daily life.
May 2022 be your year
At 2022, we help thousands of Danes every single day to become debt-free - and we hope that 2022 will be the year for you to reach your debt-free goal.
If you are in debt to Collectia and one of our customers, we strongly recommend that you contact us.
We are a professional debt collection company with over 150 years of experience and we know how to treat people in debt professionally and respectfully.