Payment Instalment Loans: how to avoid additional charges
January 15, 2018
Although it may feel like the finish line, having your payment instalment loans funds transferred is only the first hurdle. Before agreeing to anything, you must be absolutely sure that the loan agreement is right for you. Failure to do so, will inevitably cause you problems later on down the line.
Neglecting your agreement will negatively effect your credit rating. Your chances of receiving future loans will also be greatly reduced. County Court Judgments are issued to anyone who fails to repay the entire loan amount, ultimately blacklisting you from any form of credit for 6 years. The blacklist includes mortgages, all types of loans, credit cards and phone contracts.
Failing to make the repayments is not an option. It isn’t worth the sacrifice of late charges and an unhealthy credit rating. So, how can you avoid these consequences? Here at Loanline, we want to avoid these situations, for the good of the customer, as well as the business. To help with this, we have put together five tips to avoid late charges.
Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed) APR rates range from 45.3% APR to 1575% Max APR. Your APR rate will be based on your circumstances.
1. Set Monthly Reminders
Mobile phones are so intelligent now, they’re becoming more ‘personal assistants’ than mobile phones. They inform of us of the weather, traffic jams, railway disruptions, the news, the list is endless. For personal matters such as making a payment instalment loans repayment, click on your calendar. Here, you should be able to set yourself a reminder, with an alarm. Our tip is to set it for a specific time, maybe a couple of days before the repayment is due, on your lunch break.
2. Make your payment instalment loans repayment online
Although it may seem outdated to do so, avoid sending cheques. The lender may send you a letter with a cheque attached, and for some, it can can be a better alternative. However, bare in mind that it may take a few days before the lender receives the cheque; even then, the have to process it. Paying online is instant, you’re certain to get the repayment cleared, andit becomes a weight off your mind – do it!
3. Save a copy or image of your repayment confirmation
Loanline work with ethical and faire lenders, but nevertheless, it is always worth keeping a copy of your repayment confirmation. It does one of two things, ensures there are no future problems when it comes to proving you made the payment, if the lender has had technical problems(although, this would be an extremely rare case). Secondly, it gives you peace of mind. Having peace of mind is healthy, and very underrated.
4. Create a budget planner
Setting out a budget planner can be the answer to all your financial problems. Here is what you need to do:
– Log onto your internet banking (create an account if you do not have one) and write down all your expenses, direct debits, standing orders, rent costs, average energy bills, etc, etc.
– Then calculate all of your luxury spend. Cigarettes, restaurants, alcohol, personal trainer costs, clothing.
– Factor in all of your unavoidable expenses from point 1. Then look at your luxury spend, what can you do without? Our tip is not to promise yourself you’ll quit cigarettes, as your loan repayments could be effected by a habit, and that can turn out badly. Make sure you’re being realistic, as your payment instalment loans repayment must be a high priority for the duration of the loan.
– Grab a calendar, and scribble down your monthly allowance for that month (not including all your expenses, luxury and obviously, the repayment costs).
– Divide this figure by the number of days within that particular month – this should keep you on track, informing you whether you’re going beyond the daily allowance. Of course, go above this allowance some days, but be aware, you need to claw that money back with a few quiet days.
– For each day, calculate how much you have spent, and minus this sum from your monthly allowance figure.
By doing this, you have a better grip of your finances and you can stay in control. Before creating your budget planner, make sure you budget in other emergencies. Emergencies will happen over the coming months, so give yourself some financial lee-way.
5. Accept the sacrifices
Once the loan has been spent, and you’re left with the repayments, you will still have to make the repayments. Although this can feel deflating, it is necessary. Before agreeing to the loan, come to terms with the sacrifices you may have to make, in order to make the payment instalment loans repayment.
