Desperate times call for desperate measures. Thus, no one will blame you if you turn towards taking a loan in order to overcome a financial difficulty. However, loans are like boomerang. First, it’ll help you, but it’ll come back and become the problem itself.
It’s true that paying loans is a hassle, but you must never delay paying it. The longer you settle your account, the bigger you’ll have to pay. If you’re struggling to put your loan behind you, you might want to consider the following tips:
- Round up the amount.
While you can compute for the exact amount you have to pay monthly, you can also try rounding up the sum. If you have to pay $236, you can round it to $250 or $300. This way, you’ll end up with an extra. Keep this extra money. You can use these savings in times of emergency. For example, if you’ll end up with spending money on other matters, you can tap into the savings to pay off your loan for the month.
You can also take this tip to another level and add another $50 every time you allot money for paying your loans.
- Pay bi-weekly or bi-monthly.
If you don’t have enough funds to pay the loan in bulk, you can always pay bi-weekly or bi-monthly. This way, you can accumulate less interest, and pay extra payment that could eliminate some months off the estimated timeframe.
When you decide to do this, make sure that you discuss it in length with the lender. Some of them do not accept this arrangement and even get penalties in doing so. If this is the case, you can just set aside money bi-weekly and bi-monthly and still pay on schedule.
- Pay one month in advance.
The purpose of paying one month in advance is the same as that of the previous two. You can settle your loan faster and prepare for at least a month of emergency. To make this possible, you can use the money you get from your income tax return or from your 13th-month payment.
- Earn extra income.
When your expenses get higher, it’s natural to look for extra income. It might sound like a hassle, but it’s necessary. It does not have to be a permanent work. You can take a part-time job until you have fully settled your account. It’s better if you work extra hours than to skip paying your loan. This way, you will not have to suffer from penalties.
- Let go of your asset.
Let’s assume that you have gotten car title loans in Moreno Valley, and end up with the responsibility of having to pay for it for several years to come. On one hand, you can work extra hours. On the other, you can just let go of your car. The latter will only work if you have no longer use for the car itself, of course. In making the decision, you have to weigh the pros and cons carefully.
Settling a loan is never pleasant. That is why it’s better to be done with it as soon as possible. The most important thing that you have to remember is to never skip a month. If things come to worst, your last resort is to ask assistance from your friends and family.