Borrowing money is an important decision. Whether you are using a loan to manage unforeseen expenses, consolidate your debts or for any other reason, you must make sure you take your payments. A tight management of your loan will allow you to make sure your credit is under control and repay your loan on time. Plus, timely payments save you money on interest charges.
Fairstone Financial partners share six tips to help you keep control of your loan and repay your loan faster.
Opt for a payment option every two weeks
A bi-weekly payment schedule involves more frequent payments than other payment options. You will make two more installments a year than if you chose the bi-weekly installment option. These additional payments will help you repay your loan balance faster and the regular payment schedule will help you stay on track and be less likely to miss payments.
Tip: Many companies let you choose a payment date that’s right for you. We recommend that you match your loan payments with your payday.
Make additional payments when you can
Try to use any additional amount you have to repay your loan. New clothes or a party with your friends can be tempting, but the additional payments will save you interest and help you repay your loan faster. And while it may be tempting to invest any additional amount you have, your investments will not earn you as much interest as you will be charged.
Be sure to read the terms of your loan because early repayment may be worth a penalty. Fortunately, Fairstone Financial allows you to repay an unsecured loan at any time without penalty.
Set up remittance reminders or periodic payments
Making all of your payments on time is easier said than done. With several invoices to manage and a busy schedule, it’s easy to forget a payment from time to time. Set up a reminder on your phone on the day of payment (or even a few days in advance). You can also highlight or circle days on your calendar to help you remember. If you do not want to worry about making payments, set up periodic payments in your bank account or with your lender. The money will be paid on the day of your choice. You will have peace of mind knowing that your payments will always be made on time.
Be aware of payment processing times
Payments may take a few days to process. Consult your lender to find out how many days in advance he recommends you make your payments. By planning your payments, you avoid oversights and delays. You will also avoid late fees and interest charges.
Keep your statements and loan documents in one file
The organization is the key to good management of your payments and loans. Keep all your loan documents in the same place. This will give you easier access to important information such as loan amount, loan balance, term and interest rate.
Try to lower your interest rate by considering a secured loan
Do you own a house? Think about applying for a secured loan. Secured loans typically have lower interest rates. Lower interest rates mean lower interest costs, so the overall amount to be repaid is lower and potentially more manageable in the long run.
While it can be intimidating to borrow money, it is possible to keep control of your loan. Remember to always explain your situation to your lender, especially if you know you are going to miss a payment. He should be able to find a solution to help you regain control.
Would you like to have other tips to keep control of your loan? The blog of the Financial Fairstone full of articles and tips on borrowings. Interested in a loan submission? Go to Fairstone.ca, enter a loan amount and give us some information.