How to get rid of debt.


It is challenging to take back control of your own finances once they start spinning out of control.

Financial hardship can affect most people, but if you're willing to do the work and take responsibility, here are some tips on what you can try to get out of debt. 

Advisers working on a case together

Keep track of what comes into your account 

For example: 

  • Payment 
  • Child support 
  • Child benefit 
  • Pension 
  • Support from NAV 
  • Rental income 
  • Business income 

A good overview of what comes in also gives you a good overview of what you can actually spend.  

Write down your expenses during the month 

It can be: 

  • Mortgage 
  • Rent 
  • Credit card bill 
  • Consumer loans 
  • Private debt 
  • Insurance 
  • Current 
  • Gasoline 
  • Telephone 
  • Kindergarten 
  • Food 
  • Clothes 
  • Subscriptions 
  • Other? 

If you do not know how much debt you have, we recommend that you check the debt register. Please note that the debt register does not have information on mortgages and other smaller items.    

Tips to pay off more debt 

Now you have an overview of what comes in and what goes out. What do your figures look like? Do you have enough income to cover your expenses? Are your expenses greater than your income?  

If your expenses are greater than your income, you should take action. The first thing to do is to pay off your most expensive debts first.  

You can prioritise like this: 

  1. Debts you owe to the state.  
  2. Expensive debts from consumer loans and credit cards. 
  3. Mortgages.  
  4. Student loans. 

Do you have something to sell? 

If you don't have any money in your bank account that you can use to pay, see if you have anything you can sell.  

Can you earn extra money? 

Can you take extra shifts at work, or can you take a second job? Not everyone has this option, but if you are lucky, it can be worthwhile.  

Become aware of your own consumption

Take time to write a list of all the purchases you make over a 30-day period. If you buy something, put it on the list. If you pay a bill, put it on the list. This way you will have an overview of where your money is going and maybe you will discover purchases that you can cut?  

Set a budget 

Now you have an overview of what comes in and what goes out. Maybe you found some habits that you can cut when you looked over your consumption? The next step is to set yourself a budget. It can be difficult to know how much to calculate per item, but you can use SIFO's reference budget. Remember that you may have to live a little tighter than "normal" for a period of time if you have to pay off a lot of debt.  

Do not take out more consumer loans 

Don't be tempted to take on more consumer debt to cover what you already have. Expensive interest rates and fees will usually make it harder for you to get out of debt.  

Block yourself from future credit 

Once you have managed to pay off some of your debts you can go to clear your credit lines and block yourself from future borrowing.

Pay bills on time 

Avoid sending your bills to debt collection. This makes them more expensive. Set up fixed deductions on your bills. A good tip is to set as much as you can as soon as you receive money in your account. That way you are less likely to use up the money before the bills are paid. 

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