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6 Ways Debt Will Be Paid Off

Usually at the beginning of the month, those of us who work get paid for the results of our work during the past month. After getting a salary, it’s a good idea to do budgeting. The most famous budgeting formula is 50/30/20, this was popularized by the USA Senate Elizabeth Warren . Where the distribution is 50% for needs, 30% for wants, and 20% for savings.

Now in this 50% (needs) division there are bills or debts that we have to pay. Don’t be a person who begs when you want to owe money, but forget or don’t want to pay it off. Now we try to describe a sure way to pay off debt. It’s definitely paid off, I’m sure I’m sure.

Disclaimer on: This method applies and is discussed for personal debt, friends, not corporate debt, let alone the state.

1. Pay off debt from the smallest nominal

So, the first method is really easy, let’s first make a list of our debts along with the nominal debt to see which nominal is the smallest. Pay off from the smallest, then the second smallest, and so on. Need an example? This is easy, I should know that.

But if you’re still confused, for example, we owe 500,000 to a friend, then we borrow 1 million, then we pay off 1.5 million for a motorcycle. So, if it’s like this, what we have to pay off to a friend first is 500 thousand, if there’s any left over, continue paying the loan and so on.

Easy huh? Continue

2. Pay off debt with higher interest

This one, must be diligent to count. Come on, don’t be lazy.

Let’s make another list of our debts along with the interest percentage. This aims to find higher interest rates. We start trying to pay off from the one with the highest interest percentage first. Here’s an example,

For example, debt to a friend is usually 0% interest, yes, we make motorbike installments at 7.5% interest, borrow 10%. So by looking at this list, it means that the debt we prioritize is loans, then motorbike installments, and so on.

3. Install Debt Simultaneously

So, remember the 50% budgeting earlier? Let’s assume our monthly income is 6 million. This means that 50% of the budget for that need is 3 million. Now, this 3 million is half for a month’s needs, and the other half as a budget to pay debts.

That means the budget is 1.5 million. In this third way, for example we have 3 debts, it means we divide the 1.5 million by 3. The result is 500 thousand per debt.

So, if you feel you are lacking, there is still a budgeting post for wishes and savings, you can take it from there too if the debt is still not covered. Gentle reminder, it’s important for us to do the calculations first if we want to get into debt.

4. Pay directly 100% in full

This method is the most difficult, because we need a large nominal.

But, for those who are sultans or after getting a lot of fortune. Able to consider paying everything in full.

Very often we get surprised money like that, for example from parents, or win prizes, or work bonuses, or money on holidays such as THR. We spend the money carelessly, for fun, because we feel that when we get it, we don’t use energy.

Even though this fourth method is the most effective way. So if you have debt or installments, and get a lot of fortune suddenly, think about it and remember the debt first, friends, before self-rewards🙂

5. Use Assets

This is actually the first alternative way, we can use the assets we have to pay off debt. We can sell, rent, or use the assets to make money.

For example, we have car payments, to help pay off car payments, we can use the car as an online driver or to rent it out to other people.

6. Borrow Brother

Remember friends, this is the last option , the very last option .

Because if you have money problems with your brother, how does that feel? Only if you don’t have another way, you can use this method. If you borrow from relatives, the interest is 0%. So it’s better for us to pay off later because it doesn’t flower.

But so that both parties feel equally comfortable, it’s a good idea to make a letter of agreement with a notary as a guarantee of our good faith to pay it off at a later date.


That’s the sure way to pay off debt. Actually the surest way to pay off debt is to not owe. So if you feel you can’t afford to owe it, it’s better to hold it first. If you have debt, make sure it’s productive. Hopefully this article can help.