Loans have long become a common occurrence in our lives. On the one hand, loans simplify your life, allowing you to buy an apartment, car, furniture, or household appliances without waiting for the required amount to accumulate. On the other hand, unforeseen difficulties may arise when you have to solve: how to repay the loan if there is no money? The situation may turn out to be a stalemate when there has been no cash flow for a long time, and the borrower has several loan agreements and does not understand what to do.
That’s why it is important to know the following rules for loan repayment to make the process safe and fast:
- Stick to the payment schedule. If the loan agreement does not contain a debt repayment schedule, analyze all your income and expenses and draw it up yourself. To do this, just keep a logbook and record the results of your actions in it each time, or download and install the corresponding application on your smartphone. This will allow you to reduce unnecessary expenses and use the freed-up funds to pay off the loan.
- Avoid delays. Make sure you don’t miss your monthly payment due dates. This not only spoils your credit history but also entails the imposition of penalties and interest. Make it a habit to deposit money into your account 1-2 days before the payment due date. To do this, you can set a reminder on your smartphone or make a corresponding mark on your calendar. Payments are best made a few days after receiving wages. This way, you will definitely have the required amount for your monthly payment.
- Pay off one debt. For debtors with two or more loans, the best way to quickly reduce debt is to first pay off the loan that costs more than others. To do this, you need to compare interest rates and start actively paying it off, investing all your free funds and making only the minimum payment on the rest. This way, you can save on interest, while overpaying the bank will be less. Anyone who has consumer loans for a small amount needs to use all the money to repay the smallest amount early and make a mandatory payment for the rest. When it is repaid, the money that went to pay for it will appear. It should be used to repay the next largest loan. When small loans are closed, repaying the largest loan will become much easier.
- Additional income. To quickly close a microloan or bank loan, you should think about additional income. To do this, you can create a competent resume and use it to find a new, higher-paying job or contact your manager with a request for a promotion. If this doesn’t work, try monetizing your hobby: handicrafts, caring for pets, taking beautiful photographs, and creating training courses can bring in some good money. Additional income can be obtained by offering apartment cleaning services, repairing household appliances, or selling unnecessary items that have been collecting dust in the closet for years. Even minor replenishments can become an impressive amount by the end of the year, so it is better to use such cash receipts to repay the loan.