When you have several debts, looking only at the monthly instalment can hide the total cost and the actual date when repayment will end. The first step is to make a complete list, without blame and without leaving out purchases paid in instalments or card balances.
Create an inventory
Record the creditor, outstanding balance, interest rate or APR, minimum payment, due date and any possible fees. Check the agreement and your latest statement. Add up all instalments to see how much of your income they commit, and keep room for housing, food and other essential expenses.
The Banco de España recommends assessing the composition and cost of your debt. If you cannot cover minimum payments, act promptly: contact the lenders and seek independent advice before taking out further finance.
Compare two familiar strategies
The avalanche method directs extra money towards the debt with the highest cost, which generally reduces interest. The snowball method prioritises the smallest balance, providing visible progress. With either approach, keep making the minimum payments on the other debts and, when one debt is cleared, redirect that payment to the next one.
The best strategy is the one you can follow without borrowing again for basic expenses. Keeping a small emergency buffer can prevent an unexpected event from derailing the plan.
Assess any debt consolidation
A lower payment can mean a longer term and a higher total cost. Before signing, compare the balance, term, interest, fees, guarantees and final cost under both the current and new arrangements. Do not decide solely because having one payment feels more convenient.
Review the plan every month and celebrate milestones without freeing the entire payment for spending. Kinset can help you visualise payments and categories, but it does not replace reviewing the agreement or seeking professional support when payment difficulties exist.
This content is educational and does not constitute advice about any specific debt.