4 Loan Repayment Approaches to Help You Stay on Track
June 21, 2019
Payday loans have become a huge influence on our day-to-day lives due to the rapid economic changes we experience. There are a large number of people with different occupations who are sometimes unable to repay any loans owed on time. Of course, which seems like a never-ending cycle, especially when faced with an unclear way of how to find ways to repay their loans.
In turn, doubts and anxiety arise from the frustrations of dealing money owed, especially when it leads to having a bad credit history. On the other hand, people try to cut down their expenses in the hopes of getting back on track with not getting into bad credit. It may seem that they’re making the right decisions, but it can eventually turn them off from getting any further monetary support, especially when it comes to payday loans.
It doesn’t have to be this way! We’ve compiled four strategies that will help you overcome it with a careful and stress-free approach on payday loan repayments.
Find out the reason ‘why’
The easiest method to resolve a problem is to ask why. Why you personally want to be out of debt and reasons amongst individuals varies. It can be as simple as, realising that it’s holding you back from owning your favourite car, house or a city break. It’s important to note that most debts are temporary. And it depends on your decisions as to why you want to be out of debt.
Start with the smallest debt
Secondly, once you’ve found the answers to why you want to stay out of debt – the best thing is to start paying off debts with the smallest balances, which will give you the confidence to cross out existing debts. The cycle then continues until your debt free which in turn takes a good amount of time. The key is to make progress, for that reason you end from having a bad credit to a good credit score.
Improving your credit score
As briefly mentioned above, on how to move from a bad credit to having a good credit score – comes with several options. Consolidating your financial health through credit reporting agencies may not be a priority when it comes to repaying your debt. However, it helps you to become prepared when a good refinancing opportunity comes along. You want to ask for a credit report which gives you an overview of your credit history to assess the difficulty of acquiring a loan.
For instance, a bad credit score not only results in paying more interest but again increases the likelihood of getting your loans declined.
The following customer credit reporting agencies are Equifax, Experian, and TransUnion and they give you the opportunity to check your credit score quickly with no hassle. Above all, consider the fact that it provides peace of mind in terms of knowing the health of your accounts. Secondly, eliminate the behaviour that was causing the debt in the first place to avoid disappointment.
Mobile Apps to Monitor Your Loans
Nowadays, a simple search on your mobile device allows you to know how much money you owe to your lender. And perhaps change your repayment plan to suit your situation. We have numerous applications that work in a similar fashion. The following two mobile applications
OnTrees Personal Finance (Android and iOS, Free)
The application is brought to you by moneysupermarket.com. A known price comparison website specializing in financial services – similar to us by helping you make a better financial decision. The application ensures that you’ve had access to all your bank accounts. All in one place and view the flow of money coming in and out. It also splits your expenditure into categories to effectively manage your finances.
Money Dashboard (Android and iOS, Free)
We all have multiple bank accounts and savings but managing them separately can be difficult. The application encourages you to “make the right financial decisions in life” with accompanied using graphs and tables. It’s compatible with all UK banks and credit companies available.
Like what you’ve read? Check out our latest blog post about Why Was My Loan Application Rejected? on how you can have a successful re-application process despite having a bad credit.
Disclaimer – this article does not constitute advice and you should seek professional financial advice for yourself. This is a guide only.