Overcoming money problems

5 steps out of financial problems (Germany):

Step 1: breathe. You're not alone.

• 80% of Germans worry about money (CRIF study 2025)
• 25% of parents can barely cover basic needs (Forsa 2025)
• Financial problems are NOT a failure. They can happen to anyone
• The first step is always the hardest – but you can do it

Step 2: get an overview.

• List ALL income (salary, child benefit, housing benefit etc.)
• List ALL expenses (rent, electricity, food, insurance, subscriptions)
• List ALL debts (amount, interest rate, monthly instalment)
• It's tough – but without an overview there's no solution

Step 3: use immediate help.

• Debt counselling: free at Caritas, Diakonie, AWO. No stigma – professionals help thousands of people every day
• Apply for housing benefit: many don't know they're entitled (up to €370/month!)
• Child supplement: up to €292/child/month on top of child benefit
• Bürgergeld: if nothing else is enough – no shame, it's your right

Step 4: stop the bleeding.

• Refinance your overdraft immediately (instalment loan: 5% instead of 13% overdraft)
• Cancel all unnecessary subscriptions
• Check your insurance (often €200–500/year in savings)
• Switch electricity/gas (10 minutes, €200–500/year in savings)

Step 5: plan the future.

• Build a small emergency fund (even €50/month counts)
• Draw up a budget (50-30-20 as the goal)
• Build financial knowledge (SaveFoxy modules – free!)
• Celebrate small successes: every euro saved is a victory