How to pay off debts and loans: a simple method that works
Updated 4 November 2026 · by Kenzalo
To get out of debt, list all your debts (remaining balance, monthly payment, interest rate if any), pay the minimum on each, then put every extra dirham on one debt at a time: the smallest (snowball method) or the most expensive (avalanche method). Record each repayment to watch the balance go down, and avoid new debt with a small emergency fund.
1. List everything, without exception
Make a complete list: bank loans, purchases on credit, overdraft, and also money owed to family or friends. For each debt: who you owe, remaining balance, planned monthly payment.
2. Choose a repayment order
- "Snowball" method: pay off the smallest debt first. You clear one quickly, which keeps you motivated.
- "Avalanche" method: pay off the most expensive debt first (highest interest rate). You pay less interest overall.
- Debts to family and friends: agree with them on a realistic monthly amount and stick to it; that is often what keeps the relationship intact.
3. Find money to pay off debt faster
Make a budget by category and look for 5 to 10% savings on variable spending (going out, deliveries, subscriptions). Also put one-off income (bonuses, a daret payout from your rotating savings circle) towards your debts.
4. Track every repayment
Record each payment and watch the remaining balance go down: it is the best motivation. Count these repayments in your monthly cash flow so you don't think you have more money than you really do.
5. Don't fall back into debt
Build a small emergency fund (even 1,000 to 2,000 DH to start with) to cover the unexpected without taking a new loan, and plan for large known expenses (Eid, back to school) with monthly sinking funds.
Frequently asked questions
Which debt should I pay off first?
The most expensive one (highest interest rate) to pay less interest, or the smallest one to build motivation. What matters most is paying the minimum on every debt and focusing the extra on a single one.
How do I handle a debt to a family member?
Agree together on a realistic monthly amount and payment date, record each repayment and keep your commitment.
Is there an app to track debts in Morocco?
Kenzalo tracks each debt (bank or family and friends), the repayments, the remaining balance and their effect on your monthly cash flow.