For many people, debt accumulation is just an expected part of life. There are setbacks and accidents, new opportunities and once-in-a-lifetime chances, and the only accessible way to follow through on any of those situations is with a credit card or a loan.
These resources will get you through to better and brighter things, but when it comes time to pay them back, life can start to feel a little uncertain. But what can you do about it?
Be Frugal
A good rule of thumb is to make a payment every time you get a paycheck. After you pay for necessities like rent, utilities and groceries, the rest should go to your loan. This means having to cut back on a lot of spending, but it also means getting out of debt quicker.
If you can’t afford more than one payment a month, you may want to try rounding up your total to an increment of 25 or 50. If your minimum payment is $163, this means you would pay $175 or $200 instead.
Be Prompt
Setting up automatic payments is an easy way to avoid penalties for late payments. For example, if you use the MaxLend login page to access your account with them, you can schedule your payment to happen on the day you receive your paycheck. The only downside to automatic payments is the risk of being overdrawn if payment is taken when your bank account is unexpectedly empty.
If automatic payments don’t make sense for you, set a reminder on your phone or jot a note on your calendar. This way, sending a payment won’t slip your mind and cause problems.
Be Aware
Read the fine print on your loan. Even if a lender is lenient, they still have terms and conditions that you need to follow. This shouldn’t be difficult information to gather. You can find Maxlend requirements right on their website, and many others are similarly forthcoming.
There is a difference between squeaking in under the wire to meet requirements and knowing you’ll be able to live reasonably well with the added expense of loan payments. It is up to you to know your situation, and what loan, if any, is the best fit.
Be Cunning
You have to form a strategy tailored to your situation. Making payments multiple times a month works best when you have only one loan to worry about. But when you have several sources of debt, the plan no longer works because the funding for it just isn’t there.
You’ll want to pick your smallest loan to focus on first. Make the minimum payments on everything else, and put whatever extra you have into paying off that loan early. Even if it has the lowest interest rate, getting it out of the way opens up more money to pay off your bigger debts quicker.
Debt is scary, but it doesn’t have to feel hopeless. You may be looking at a long road ahead, but taking these steps will help you feel more in control of your situation.
