If you’re in a tough spot, financially, doorstep loans can come to your aid and help you get out of a difficult situation. Check out our comprehensive guide to doorstep Loans to find out more about them, who is eligible, what the conditions are, etc. So, you know everything about finding a loan, applying, qualifying, and even the Dos and Don’ts of doorstep loans, but what about repayment?
That is a major part of the process of getting a loan, and you need to ensure that yours is successful and that you don't land in even bigger trouble. Here are some tips to help you out with successful repayment.
Only Use Doorstep Loans In Case Of Emergency
Loans are not a way of life, no matter how convenient they may seem. Yes, they are a good and helpful back-up to have when you are in dire need of money, but if you just want something and you don’t need it, then perhaps it’s better to wait instead of putting yourself in debt.
Really think about your priorities and what you can do without. You would be surprised at how little we actually need and how many expensive wants society has conditioned us to have.
Borrow Only What You Need With Your Doorstep Loans
To the naïve or inexperienced, loans seem like free money, but you know better than that. Following that logic, you may be tempted to borrow more money than you actually need, because you are overestimating the affordability of the repayment instalments or your ability to budget for them.
Not only is the money not free, but it is actually very expensive, because of the high interest attracted by the lack of security you present as a borrower. Keep that in mind and limit yourself to only what you absolutely need.
Choose Doorstep Loans Options With Cheaper Instalments
When the agent comes over to your house to present the offer and allow you to choose your preferred option, take the time to properly review them and make some quick calculations.
Sometimes, it’s worth choosing the option with the cheapest repayment instalments, even if that means that you end up paying more in total, because of the higher interest. If getting enough money for the repayment every month is your primary concern, then definitely go for the cheapest doorstep loans.
Get Doorstep Loans For A Longer Term
The longer you get your loan for, the cheaper the instalments will be. Yes, that means you’re on the hook for a longer time, and yes, that means you will pay more in the long-run.
You’re going to pay more than the amount you borrow anyway, but repayment schedule and amounts depend on what your financial concerns are. Do you have more of a problem with paying more overall, or per month? Pick your repayment term accordingly.
Make Sure There Are No Hidden Fees In Your Doorstep Loans
One of the primary reasons why people encounter difficulty with repaying loans is the fees that the company slaps on for various reasons, which are hidden or undisclosed at the time of signing.
That is why you need to be sure to read everything, multiple times, front and back, to be sure that there are no hidden fees and that you are aware of everything you are paying for. Nothing ruins your ability to repay a loan like surprise fees.
Repay Your Doorstep Loans Early If You Get Money
Maybe you’ve never thought about this option, but if you get a hold of a significant amount of money and you could afford to cover the rest of your loan, then try to repay it early, instead of leaving it to be paid in instalments.
The reason for that is that you don’t know what your financial situation is going to be like in a few months and it’s always best to be rid of debt as soon as possible. That way, you no longer have the responsibility or the stress that comes with it.
Budget Your Money For Your Doorstep Loans Accordingly
So many people make the mistake of not really changing their lifestyle, the way they spend their money, or their expenses when they take out a loan. But when you know that there is a certain amount of money that you must pay every month, you’d better make that a priority and start being smart about budgeting.
At the start of the month or on payday, sit down and make a list of everything you need to pay for:
- Loan instalment
- Miscellaneous expenses, etc.
Set money aside for the loan and don’t touch it until you need to make the payment. If you use a debit card, take money out and hide it. That way, if you spend too much and don’t have enough in your account come repayment time, you will still have the intact sum stashed away somewhere. Alternatively, opt for weekly repayment loans to have that constant in your life.
Make Sure The Doorstep Loans Are Legal
Have you ever wondered whether your loan company is even operating legally? It may be a bizarre question to ask, but not an unreasonable one. There are plenty of loan sharks out there waiting to prey on people who are financially vulnerable and use unethical and illegal practices.
If your lending company engages in illegal practices, like offering you money unsolicited, then the agreement is not legal, and you may not actually need to pay them back. Contact the Consumer Credit Association (CCA) and check to make sure.
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In conclusion, the repayment part of your loan does not have to be a nightmare. It’s a matter of preparing and thinking about it from before you even sign and then continuing to make sure that everything you do enables you to repay your loan with minimal hassle and zero stress.