List Headline Image
Updated by April Rose Casiple Semogan on Nov 25, 2019
Headline for Top 10 Tips For Better Loan Management
 REPORT
10 items   4 followers   0 votes   1 views

Top 10 Tips For Better Loan Management

There are times when you are determined to set foot on one of those milestones but you are just not earning enough to afford it. Fortunately, some loans make the funds accessible for you to be one step closer to happiness. However, loans should not be abused as it is still a form of debt. Since it is borrowed money, you have to make sure that you pay it on time along with its interest.

Organise all the information on your loans.

Mistakes are bound to happen if you are all over the place. Take note of all the information related to your loans and get them organised. Regardless if it's a personal loan, pay day loan, quick cash loans, etc. Here are the things that you should know about your loans:

  • How much do you owe?
  • To whom do you owe it to?
  • What is the interest rate?
  • How much are the repayments?
  • When are they due?
Plan your budget.

A budget gives you a clear picture of what you have at hand. It gives you an idea of how much money you have after you deduct all your known expenses from your monthly income. This will help you know if you need to cut down on some trivial things so that you can repay your loan without sacrificing your necessities.

Avoid using your credit card for things you don't need.

You know what? This tip should be applicable even if you do not have loans. Do not let your debt pile up especially for things that are not essential for you to live.

Check if you can lessen your expenses.

Track your expenses by keeping a record of the products and services that you are spending your money on. Keeping the receipts will keep your spending habits in check.

Keep the receipts from your purchases.

It is easy to overspend when you are shopping without a list. Make a shopping list that only includes the items that you need around the house. You should avoid getting items that you do not need.

Follow a shopping list.

It is easy to overspend when you are shopping without a list. Make a shopping list that only includes the items that you need around the house. You should avoid getting items that you do not need.

Be mindful of your due dates.

You should make sure that you pay your loan on time. Set up a reminder so that you will not forget. Generally, loans make you pay for late payments.

Pay more than the minimum if it is possible.

The minimum amount of payment may sound appealing, however, this also means that you can still incur interest on the remaining balance. This is why pay you should more than the minimum as much as possible.

Make advance payments for less interest costs.

The longer you owe money, the more interest you need to pay. This is why paying off your loan as soon as you can save you money. However, some loan has a prepayment penalty. Just check if you can save more by paying the penalty versus paying the interest until your term ends.

10. Be one payment ahead.

Having one payment ahead gives you protection from a penalty for the unfortunate event that you are unable to make a payment or your direct debit fails to push through.