From Debt to Freedom: The Best Repayment Plans for Every Life Situation

"Buy now, pay later" options, credit card installments, overdraft facilities, and traditional consumer loans: financing options are now diverse and often just a click away. But what initially seems convenient can become expensive in the long run. Manuel Peichl, Financial Health Expert at Anyfin, presents three strategies to efficiently tackle debt.

According to recent data from Schufa, more Germans than ever received their first negative entry due to repayment difficulties in the first quarter of 2025 – 13 percent more than during the same period last year. This makes it even more important to actively and early manage one’s consumer debt.

"Loan installments have become so commonplace for many people that they are no longer even consciously noticed," says Manuel Peichl. "In particular, many small amounts can cause debts to grow unnoticed, leading to a situation where people mainly pay interest instead of reducing their debt."

Three Repayment Strategies Based on Your Life Situation

What many consumers don't realize: there’s often more flexibility with consumer loans than they think. You don't necessarily have to stick to the lender's preset installment plan. Higher monthly payments or extra repayments are often possible without additional costs, helping to reduce interest charges and achieve debt freedom more quickly.

According to Manuel Peichl, these three repayment strategies can help:

1. Fast Track to Freedom

High monthly payments accelerate debt repayment and significantly reduce interest costs. This strategy is ideal for those who have some financial leeway and want to be debt-free quickly.

2. Steady and Secure

A consistently calculated amount provides reliability and routine. This approach is particularly suitable when planning security is a priority.

3. Flexible Flow

Low monthly payments provide breathing room in the budget, for example, during periods of fluctuating income or higher expenses. Although this strategy extends the repayment period, it can be a good transitional solution. "It makes sense when short-term flexibility is needed," says Manuel Peichl.

Five Questions for More Clarity in the Credit Jungle

Spring is a great time to review and reorganize your financial obligations. These five simple questions can help:

1. What credit obligations do I currently have?
2. What are the monthly payments, and how are they structured (interest, fees, principal repayment)?
3. Which debts should I pay off first? Manuel Peichl recommends: "Rule of thumb: tackle the loan with the highest interest rate first, as it offers the greatest potential for savings."
4. Can I consolidate multiple loans or refinance with a cheaper provider?
5. Which repayment strategy best fits my current life situation?

Even small adjustments, such as increasing an installment or consolidating several loans, can bring noticeable long-term relief.

About Manuel Peichl

Manuel Peichl is a Financial Health Expert at Anyfin. As the deputy head of customer service, he is in direct contact with consumers on a daily basis. This gives him a deep understanding of the questions, challenges, and needs they face in financial matters.

About Anyfin

Anyfin is a fintech on a mission to simplify loan repayments and improve the financial well-being of millions. We help consumers reduce the costs of high-interest loans, and take control of their repayment plan. The company was founded in 2017 by Mikael Hussain, Sven Perkmann, and Filip Polhem, all of whom have extensive experience from tech giants like Klarna, Spotify, and iZettle. Anyfin is currently operating in its home market of Sweden as well as in Germany, Finland, and Norway.