What to do if you have Difficulties Making Loan Repayments
It is essential to make the repayments on your loan on time. This is because if you do not manage to do so, you will have extra fees to pay which will be added to the loan and make it even harder to make the repayments. This is why it is really important to consider whether getting a loan is the right thing to do before you get one out. If you think that there is a risk that you will struggle with the repayments, then it is a really wise idea to borrow less, pay it back over a longer term so the repayments are smaller or not take out the loan at all.
Often it can be too late when you realise the loan is too expensive and you have already taken it out. Then you will need to think of some things quickly that will help you to cope. Try not to panic as there could be quite a few solutions available to you and the more you worry, the harder it will be for you to think clearly and figure things out.
To start with you should think about whether there are any ways that you can have some extra money. Consider whether you can get more money in your current job, perhaps by asking for a rise or by working extra hours. If you cannot then consider whether getting an additional job could help, perhaps evenings and weekends doing some freelance work. There is quite a lot available, you can look online and although it may not always pay a lot, it can all help to boost your income. You may also be able to sell some of the things that you have to get some extra money. Although not as good as an increase in regular income, it could help to keep you going for a while.
Whether you can earn more or not, it is wise to take a look at what you are spending and see whether you can reduce it. You may be able to switch suppliers/brands/shops in order to spend less on your regular purchases. It could also be wise to think carefully about every item that you buy to think whether it is necessary for you to buy it. Obviously there are certain things that we need to pay for, such as taxes, rent, utilities and food but we buy a lot more things than this. We tend to pay for mobile phones, tv packages, clothing, alcohol, going out, home décor and all sorts of other things. Although it is nice to have these things, they are not necessary and so you could consider cutting own on the amount that you are spending on them. You may be able to change the place that you buy them from and find that you do not notice much of a difference apart form the price and you will have more money available to pay your loan repayments with.
It can be worth setting up your payments so that they leave your bank account as soon as you are paid. Then you will be sure that you will have enough money there to cover them. Of course, you will then need to make sure that you budget with the rest of your money so that you have enough to spend on essentials for the rest of the month.
This can work as long as you have a good income and can reduce your spending. However, if your income is low and you do not have a way of increasing it and you already spend very little, it can be much more difficult to manage. If you are in this situation then it is worth phoning your lender. Chat to them about the fact that you are struggling and find out whether they can help you by lowering your repayments. It will mean that you will have to keep making them for longer, they will charge you more, but if it means that you will be able to manage every payment and cope with paying your other expenses as well, it can be worth it.
You could get financial advice as well. It is possible to get debt help for free and so find out where you can get this locally. You will find that the debt counsellors will not judge you and they wil be able to make helpful suggestions which you may not have thought of. When you are panicking it is easy to miss even the most simple of solutions and they will be able to calmly and kindly run things through with you. This could help you to just clarify your situation in your mind and help you to come up with a useful and practical solution. There are solutions out there, but you just have to find them.