The lower the debt, the easier to repay it

The lower the debt, the easier to repay it

Many Poles do not have loans for large sums but are burdened with numerous minor debts. They result from instalments not paid on time, bills as well as fines and penalties. It is advisable to start acting before the debts increase and become substantial. Increasing indebtedness may cause a feeling of helplessness and personal failure. But by regularly applying a few simple rules, you can get out of almost any debt.


It is often the case that until the debt is small, Poles ignore it and treat it like less significant or harmless. Meanwhile, it is best to repay it as soon as possible, before a small liability unnoticeably increases significantly, e.g. due to penalty interest. What is more, such liabilities tend to accumulate. After summing up two, three, four small debts, it runs out that the liability is quite substantial, which becomes a serious problem. That is why the basic rule concerning the repayment of small debts is: do not wait until the debt increases. Repay them as soon as possible and maybe you will not even notice the sacrifices you will have to make in this regard.  

Despite willingness and attempts to control their household budget on an ongoing basis, Poles do not do it sufficiently meticulously. As much as 73% of us remember their expenses without having to summarise them. That is why it is hardly surprising that we often spend too much. As a result, we take out new loans or cannot afford the instalments of previous liabilities.

The basic step should be to make a detailed list of monthly expenses and analyse on what we spend most money. The more detailed list we create, the more meaningful conclusions we can get. It is a good idea to take this opportunity and make a review of the flat, what is left in the refrigerator, whether we actually use all cosmetics we have and how many unused clothes there are in the wardrobe. After such an analysis comes another, very important part: indicate those elements you can live without. It you have difficulties in making the choice, try to carefully review the estimated amounts you spend every month for each category. When you realise what savings can be brought by e.g. quitting smoking, limiting nights out, eating out or driving to work by car, we can get dizzy when it turns out that it is a multiplication of the instalment you recently failed to pay. It is also a good idea to circle in the list of our monthly expenses the ones which are necessary but could be lower, e.g. expenses related to the car, such as petrol, repairs or car parks, telephone bills, branded clothes or services such as hairdresser or beautician. Remember also to make a detailed shopping list that will include categories, such as eggs or coffee, but also their estimated price.  

You can save a lot only by making these small sacrifices or changes. How to verify it? You only have to turn the ideas into reality and sum up the difference between the first and second month of expenses. It is worth to give up some pleasures for some time so that as a result to repay a still small debt before it increases and regain psychological comfort.

 More than one

If we have more than one liability, all the more it is a good idea to carefully analyse your financial situation and plan further actions. Most of all, do not take out new loans to repay old ones. This way you can get into a debt spiral which will be hard to break.

If you cannot motivate yourself to save money or your financial situation is difficult, it will be best to start with repaying the smallest liability. Allocate for this purpose all spare funds. Repayment will be a motivating factor for further action, e.g. the repayment of other liabilities. Having repaid one debt, it is worth to allocate every saved amount to the next, currently smallest liability.  

People who are more disciplined may repay their liabilities not from the smallest one but the one with the highest interest, regardless of the amount of the debt. This will reduce the costs generated by interest charge on the loan and speed up the repayment process.

The most important thing is to remember about the objective we set for ourselves - get out of small debts before they increase. Almost every case, and certainly the ones taken over by KRUK Group, can be resolved simply and amicably by entering into a settlement. Regardless of the manner in which you contact our company: by telephone, in person or via the Internet, on the other side of the line there is a person who will give us advice and assist us in adjusting the instalment to our financial capabilities.

It is well known that avoiding the problem of indebtedness is the worst solution, which usually ends up with taking the case into court and, subsequently, with enforcement proceedings. A settlement also means reducation of the period in which interest is charged. But that is not all. Peace and joy when we finally manage to change the management style of the household budget and positively resolve the issue that has tormented is an unquestionable asset.

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