Ways to Avoid Late Repayment in Personal Loans

Taking out loans and getting into debt is never a financially great thing to do, but if you have loans and you are repaying them, you definitely don't want to get into even more trouble by missing payments. As someone with ADHD that is something I'm likely to do, so these great tips on how to avoid late repayments are definitely worthwhile!

Sometimes things happen that catch us unaware, like a leaking roof or transmission problems with a vehicle. We might have the money to handle the expense if only it was able to be paid in installments and not due as a lump sum, as these repairs usually are.

In cases like this, a loan or line of credit may be the answer. Personal loans from Money Trumpet can provide a means by which your financial obligations can be spread out over a longer period of time, thus providing a financial cushion when the need arises.

Once you’ve secured that credit, you’ll want to be sure to pay off the loan in a timely manner and avoid late fees or marks against your credit score. Here are some simple guidelines to follow:

• Plan ahead

Planning ahead is important in any situation, but it’s vital when making loan payments. Even in this digital age, there is still processing time involved in transactions, which can be as long as three to four days. Have you sent a payment through the postal service? Now you can expect an even longer period of time for delivery, in addition to any processing time. By not waiting until the last minute to make a payment these issues can be avoided.

• Reminders

We’re human and forget things. Add to that the other responsibilities in our everyday life — jobs, getting the kids to school events — and it’s easy for a payment date to slip by. Make technology work for you by setting reminders either online or on your phone.

• Automatic payments

The simplest way to ensure payments are received on time is to set up an autopay for your account. By doing this you won’t have to worry about payment dates, processing times, etc. There is one caveat: You’ll need to verify that there are sufficient funds in your bank account in order to prevent overdraft fees. Also, if setting up an autopay, it’s best to pay more than the minimum due, either the full amount or some fixed amount that is greater than the minimum payment.

• Other tips

If you prefer not to use autopay there are other ways of meeting your payment dates. Setting your payment for some familiar date, like your birthday, can make it easier to remember. Do you get paid monthly? Request that your payment date is just after that day to ensure you have the funds. You may also want to consider weekly payments in order to avoid making one large payment for an entire month.

• If you’re late

Sometimes payment may be unavoidably late. If this happens, call your lender immediately and see what they recommend. They may even waive fees if the payment isn’t excessively late or if tardy payments are a rarity on your account.

Making loan payments by the due date is important not only because it will save money in late fees, but late payments can also impact your credit score. Unforeseen events happen in life and having a line of credit available to you can avoid a lot of unnecessary stress; take care of your credit and it will be there when you need it.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

Previous Post Next Post