How to pay your loan installments and avoid surcharges – Installment Loans

Well done! You have received your loan. Now is the time to use it properly and not waste it. Surely you had a goal, it’s time to go after him.

Robin is glad that you have been granted the loan, but he is aware that it is very important to keep in mind that loans must be paid on time.

Otherwise, your chances of receiving other loans in the future could be reduced.

 

How to avoid late payments of fees

How to avoid late payments of fees

Follow these tips that will help you organize yourself better and avoid falling into default:

  • Build a monthly budget :
    Making a budget will help you keep your personal finances organized. Having good habits in your personal finances can greatly reduce the chances of falling into arrears.
  • Use a calendar :
    Be very clear on what day you should pay your loan and always try to pay it that same day. If possible, ask your lender that your payday be the same day or the day after the date you receive your salary.
  • Notifications :
    If a calendar is not enough, you can use an application or alarm that serves as a reminder to make payments every month.
  • Control your level of debt :
    Avoid borrowing more from the account. As the saying goes: “don’t take more than what you can return”. If you always stay within your limits, you will not have problems with the payment.
  • Search financial information :
    Many people fall into arrears because they have no financial culture. It is convenient to value money and know how you can use it.
  • Save :
    Always try to have a certain amount saved in case your income decreases. This way you can use your savings to pay off the debt until your income increases again.
  • Avoid falling into a circle of debt :
    Do not use loans or credit cards to pay other loans, it is not sustainable. It is essential that you never consider having more than one loan for active consumption.
  • Read the “small print” :
    Clarify all your doubts with the lender. Ask all the questions you consider necessary.

 

What happens if you can’t pay your personal loan

What happens if you can

Although it depends on the contract you have with your lender, it is very likely that if you do not pay your loan installment date it will be forced to seize you.

What is an embargo?

What is an embargo?

A lien implies that the lender will take possession or retain what you put as collateral; It can be your car, your home, bank account, or any asset you own. It all depends on the loan amount.

For this reason, Robin always advises you to have a “plan B”. If this is the case you cannot pay a month, be very clear what you have to do.

For example, immediately notify your lender to evaluate the possibility of rescheduling or refinancing the debt.

Normally the payment out of date will be marked in the conditions of your loan with penalties and default interest, which can be significant. If you pay late or cannot pay a month, the cost (real money you will have to pay back) of your loan will skyrocket.

Another option may be the purchase of debt by other financial entities. This is usual when seeking to reunify several debts into a single new loan.

Remember that Robin is at your disposal to help you. Plan, meet your payments, and your financial situation will improve.

 

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