How to pay off a loan with the zero sum budget

Do you have a lot of debts but you are not in debt mediation? Applying for a loan to pay off your debts is not always the best option. Borrowing money also costs money and finally you will have to pay back more that you have to pay off at the current moment. It may also be that you are blacklisted or have a bank listing. Then you can’t go anywhere.

To pay off debts as quickly as possible and as much as possible, you can use the zero-sum budget method. It is a very simple method to pay off your debts quickly.

zero sum budget method

zero sum budget method

You would be surprised how many students are unable to manage a budget properly. That is why I propose this simple method that can help students and other people get rid of their debts quickly.


First of all it is of important course that you have money on something. If you have nothing left after paying the regular monthly invoices, it is really important that you take on a job somewhere or that there is a possibility somewhere else to generate extra income. Invoices must therefore finally be paid. It is therefore best that you look for a good job that generates sufficient income. But that does not, of course, ensure that you actually use the money to pay off debts.

Automatic Saving

In America they have developed a handy app for this, namely Digit. It is an app that automatically calculates how much of the money you get in your income you do not need for your daily needs. The app will automatically put money aside for you without actually feeling it. The money can also be withdrawn any time without a problem.

Saving has never been easier. If you do not want to use this app yourself, you can, for example, place a standing order through the bank. The problem is that the same amount will be deducted from the bill every month, even if there is not enough on it. However, you can set the account at the bank so that you can never go below zero. This way you avoid high costs because you are in the red.

Total sum of expenses


When you have to make a total sum of your monthly expenses and expenses, it is better that you do not just do that by heart. You just can’t keep up with that properly. You usually spend much more than you originally thought. Otherwise you would have had no debts in the first place.

So make an Excel file where you record all your expenses. Nowadays you have different apps for which you can easily and quickly enter your expenses and costs.

Collect all debts

In order to of course be able to pay off your debts, you must collect all papers from your debts. For example, you can ask for a repayment plan for each debt. This is of course not always possible, but if it is, make sure that the payment is not too large. Many small debts make one large debt.

Principle of the zero sum budget method

Principle of the zero sum budget method

Do you now have a good overview of your income, expenses and debts? Then you should get a very clear picture of your budget. Now comes the important part. The principle is based on the fact that: income – expenses – debts = 0

In order to achieve this, the debt that you pay off will depend on your total income and expenses. If you have little left, you will be able to pay off little debts. If you have more left over, the intention is that you pay off a larger part of your debts until the total sum is finally set to 0. That is also the maximum that you can pay monthly. That way you can reach the maximum and pay off your debts efficiently.

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