How Be Ahead of the Game From the Start 🏃♀️
First things first, let's talk prevention. The best way to avoid falling behind on loan payments is to make a plan before you even take out the loan. Dive into your bank account and ask yourself, "Can I realistically afford this loan payment every month?" If the answer is no, then maybe it's not the right time to take out a loan. Give it some time, the right offer will come!
Before you settle on a lender, decide if payment flexibility is important to you. Theres a few lenders out there that allow you to pick a day of the month that aligns with your payday schedule.
If you do decide to take out a loan, make sure you understand the terms and conditions. Read the fine print, people! Know the interest rate, the length of the loan, and any penalties for missed payments. And for the love of all that is good and holy, don't borrow more than you need. Just because the bank is willing to give you a big fat check doesn't mean you should take it. Be smart, and only borrow what you can afford to pay back.
Well.. I’m Behind… 🤭
Now, let's say you've taken out a loan and are struggling to make the payments. Don't panic! Falling behind on loan payments happens to the best of us. The worst thing you can do is ignore it and hope it goes away. Spoiler alert- it won't.
Here are some steps you can take to get back on track:
- Make a list of expenses that have either already come due or are coming due, so you know how much cash you need.
- Second, prioritize paying the bills that keep you safe, like housing, utilities, and others with whatever cash you do have.
- Third, reach out to your lender. Explain your situation and ask if there are any options for repayment plans or deferment. Ignoring the problem will only lead to more fees and penalties. It’s better to face it head-on and come up with a solution together.
If you're really in a bind and can't make any payments at all, consider reaching out to a credit counseling agency or government assistance programs. They can help you create a budget and come up with a plan to get back on track.
In conclusion, keeping up with loans can be a tricky beast, but with some motivation and a plan, you can avoid falling behind on loan payments. Remember to only borrow what you can afford to pay back, read the fine print, and don't be afraid to ask for help if you need it.