Managing Your Loan Repayments - Flexible Personal Advice

Managing you personal loan repayments can be an even harder task than deciding on the kind of loan you want in the first place. Here we offer sound advice on how to keep up with your repayments, while still remaining flexible.

How do I know I can afford the repayments?

When taking out a loan it is important that you can handle the repayments. Work out how much you can realistically afford to repay each month. Whilst you need to be comfortable with the monthly amount, you should also bear in mind that the longer you take to repay, the more interest you will pay in the long run, so try to find a balance between the two.

What if I fall behind on my repayments?

If you find that you are struggling to keep up your repayments, contact the lender and explain your problem. Contrary to popular belief, money lenders are not all bad, and most would prefer to work out a new repayment plan that you can afford, rather than start legal proceedings against you or take it as far as repossessing your home.

What if the worst happens?

No matter how carefully you budget, there are some things that you just can't foresee. What if you suddenly fall ill or lose your job, or worse? You may feel more comfortable with borrowing money if you take out payment protection insurance.

Payment protection insurance is offered by all reputable lenders. Prices and terms will differ from lender to lender, but by and large, standard insurance should:

1. Cover your repayments for 12 months should you lose your job.

2. Cover your repayments for 60 months (or until the debt is repaid in some instances) if you cannot work due to injury or illness.

3. Repay the balance of the loan in the event of permanent total disability, critical illness or death.

 

 

 

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