Four top tips to manage a personal loan

personal-loansThe great excitement that follows the granting of a personal loan that one applied for is quickly followed by the next step required which is the things that are necessary for you to manage the investment. The following four tips have been listed to help you manage your personal loan with great success.

  1. Make use of a direct debit and a reminder

Creating a direct debit allows for your debt to be automatically deducted as soon as there is a deposit being made on your account. In taking this step, however, you should be certain that the money that will be left in your account will be enough to take you through the month.

You should also set up a reminder to check your account balance anytime the direct debit is due. There are a lot of application templates online that you can download on your devices that will make the reminder quite easy for you.

  1. Be a payment ahead

Anytime you successfully receive a loan; a good practice is for you to make a first time payment right off. You shouldn’t look at the fact that your first loan repayment is not due yet. This should be done so as to put you one payment ahead and will, therefore, cover up for any unfortunate event in case a direct debit doesn’t occur. More details here: http://www.independent.co.uk/money/loans-credit/10-tips-for-taking-out-a-personal-loan-8205679.html

  1. Do ad hoc extra fees or make your direct debit a little bit higher than is required.

A good way to protect your personal loan is to make your direct debit a little bit higher than the required amount. Increasing it by about $5 or more won’t be a bad idea. This way, you get to repay your loan much quickly and also reduce the amount of interest you get to pay.

Another thing you can also practice is to deposit some cash anytime you have some to spare. Try to suppress your urge to spend it, but rather use it to offset your debt.

  1. Keep your lender updated about your details

It is very important that you update your lender about your current details such as your current location, change in email address, phone numbers, and other contact information. This is of great importance so that your lender can easily contact you if for whatever reason your payments don’t work and you can rectify it.

We hope that you make use of these tips supplied the next time you apply for a personal loan.