Business Daily Media

Making Loan Repayments: Here's How

Taking out a loan is very common, and lots of people utilise them when they need financial support. From a short term loan to a payday loan, there are lots of different types to choose from, and it’s all about finding the right one for you. But once you’ve got your lump sum, you need to start thinking about your repayments. So, if you want to know more, keep reading and find out exactly how you can make your loan repayments.

Use Automatic Payments

One of the easiest ways to make your loan repayments is with automatic payments like a direct debit. These will come out of your account each month without you having to do anything except make sure the money is in your account. Using a direct debit to make your monthly repayments will ensure that you don’t forget about them or miss them, causing you to incur late fees. So, don’t leave making your repayments down to the chance that you’ll remember to pay it, and set up automatic payments right away.

Change The Payment Date

One top tip when making your loan repayments is to ensure that they come out of your account when it’s suitable for you. Try changing the date to one that works well for your finances. For instance, the day after you get paid normally works well for a lot of people, as you can always ensure you’ve got the money in there. Setting it for your payday can sometimes cause issues if that day falls on a weekend or bank holiday, so try doing it for the day after and you should run into fewer problems.

Use The Correct Bank Account For Repayments

You also want to make sure that you have your loan repayments come out of the right bank account. If you have a separate one for bills, then make sure your direct debit is set up for that one. Don’t have your repayments spread around all different accounts, as it can easily get confusing, and you won’t know what’s been paid and what hasn’t. Make sure you have your loan repayments coming out of your bills bank account and you’ll find managing them much easier.

Always Have Reminders

Even if you have automated your payments, you should still set a reminder to check your payment has left your account. You never know when something could go wrong, and you don’t want to be left with a late fee that wasn’t your fault. Set a reminder in your phone or write it on your calendar so that you’ll definitely see it and give your accounts a quick check when it pops up. It’s always better to know that your payments have gone out, rather than just assuming.

Try Consolidating Them

There is one way that you could potentially make all of your monthly repayments a lot easier, and that’s with consolidating them into one. It’s important that you know all of your early repayment fees beforehand but taking out one consolidating loan can be a great idea for those who want to simplify their bills. Instead of having to repay lots of different loans, you’ll only be repaying one, as you can pay off everything else with the consolidation loan instead. This might not work for everybody, so it’s worth checking with your current lenders what the charges will be for paying things off early. But once you’ve worked out if it will leave you better off each month, you may be able to enjoy the benefits that consolidating loans can bring.

Loan repayments can be daunting when you first see them, but with a little management and thought, they can be very easy to make. Using automatic payments, keeping track of your bills, and even consolidating them are just some of the ways you can make them even easier. If you’re ever struggling with your loan repayments, make sure that you speak to your chosen lender and let them know what’s going on. They’ll can’t provide you with support if they don’t know you need it. So, why not utilise some of these tips, and you’ll be well on track to making every loan repayment.

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