Mourning for Peter Zwegat: His best tips for debtors

From 2007 to 2019, Peter Zwegat helped people who got into financial difficulties in “Get Out of Debt” for RTL. With his famous flipchart, he became Germany’s financial conscience personified. Sayings like “Fill up three more times and then Peter Zwegat will come” became common parlance. As has only now become known, Peter Zwegat died on August 9, 2024 at the age of 74. His tips for reducing debt live on.

Opening and sorting letters

Peter Zwegat’s tips often sounded obvious, but they usually weren’t for people who were overwhelmed by debt. One credo of the trained social worker was that debtors should open every letter from creditors and sort them meticulously. This way you don’t lose track.

A simple tip, not really worth mentioning. But there’s more to it than that: you shouldn’t close your eyes to your financial problems and ignore them. Very important: Don’t show false shame or false pride, but rather let yourself be helped.

Inventory

According to Peter Zwegat, in order to get an overview of the amount of debt, you should record it precisely. By taking a written inventory, you can find out who you owe, how much, and when you have to pay off the debt.

Make a debt plan

Closely related to taking stock of your debts: prioritizing the order in which you pay off the debts. Rent and electricity costs should always come first. If you fall behind on this, things can quickly become serious. Loan installments should only be paid after the most important basics have been paid.

Keep household records

It also sounds banal, but: To get an overview of the financial situation, it helps to have a list in which income and expenses are offset. Because only those who spend more than they earn incur debt. That’s actually quite simple.

As a practical tip, Peter Zwegat recommends keeping a household book. This makes it clear how much money you need per month for daily use and what is left over to pay off debts.

In addition, an overview of expenses helps when it comes to the question of where you can save. Do I really need a car? Which insurance do I absolutely need? Which one can you go down with the contributions?

Shopping list yes, credit card no

Peter Zwegat also has simple and effective tips when it comes to everyday expenses. Before you go to the supermarket, make a shopping list with the most necessary products – and then actually stick to it. You should ignore special offers if you wouldn’t buy the reduced price items anyway.

In general, discipline is important. If it helps, you can lock your credit card away in a practical and symbolic way.

Talk to creditors

You should always stay in touch with your creditors and inform them that and why you are currently insolvent. That makes a serious impression.

If necessary, agree on payment in installments with the creditors. The rates should then also be adhered to. According to Peter Zwegat, you should not sign an acknowledgment of guilt.