Prioritize among the debts

Earlier on this site you have been able to read that it is very important to get an overview of their debts and the current financial situation. Once you have done this, it is time to move on and start prioritizing where the money should go.

The very first thing to prioritize is to put away enough money to cope with daily living. This means money for the home and food. After that, it’s time to spend money on household expenses, childcare, travel to work, A-cash. Then things like electricity, telephone and home insurance

Rent and monthly fee

Rent and monthly fee

If you live in an apartment or condominium, there is a great risk that you can be evicted if money for the rent and other housing costs do not come in time. According to Swedish law, it is possible to terminate someone’s rental agreement if the money does not come in within a week (Jordabalken Chapter 12, section 42). For a condominium, the rules are even tougher (Housing Act, Chapter 7, Section 18).

Should you then be able to pay the rent within three weeks, you will be able to keep the apartment. If it is a rental right, the corresponding time is only 12 days. Since this is not a long time, it is important to manage their payments as well as possible.

If you are a homeowner, it is important to manage the payments of a possible home loan, as there is otherwise a risk that the bank will sell the house as payment for this loan. It is therefore quite obvious that payments to the accommodation are a high priority.

If there is a loan where someone has entered as guarantor

If there is a loan where someone has entered as guarantor

This loan should not be given priority. This is because this is a loan that has been taken with the condition that another person should cover up if the economy becomes difficult. Other creditors will not accept repayments of this type of loan instead of receiving their money.

Then this can be painful as there will be another person who may take financial responsibility when it is not this person who has problems. But even if it is difficult, something must be done.

Automatic transfers

Paying bills via Autogiro is very easy in most cases. But if there is no money so it is enough at the end of each month this is something you should stop with. It will then be easier to allocate money to what is most important.

Bank overdrafts

Bank overdrafts

If there are credits that are overdrafted, it is in the bank’s full right to take money for these debts directly when it comes to income in the account.

There is then a risk that the money that remains will not be enough to pay the stay. Therefore, be sure to have a chat with the bank to try to find a payment plan that you are both satisfied with.

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