What to do When Your Loan is Outstanding?
Outstanding loans can be a source of stress and anxiety. No one ever plans on going into debt, but sometimes you find yourself in a situation where you are struggling to keep up with your monthly payments, or that you will never be able to get out from under the debt. However, there are steps you can take to reduce the amount of stress associated with your loan debt and improve your financial situation. In this blog post, we will explore some of the best ways to deal with outstanding loan debt. We will also provide tips for staying organised and keeping on track with your payments. So, if you are feeling overwhelmed by your loan payments, keep reading for helpful advice on how to manage your debt and get back on track financially.
1) Organise your outstanding loans
The first step to getting out of debt is to become organised, and this includes organising all of your outstanding loans under one place. Being disorganised can make it difficult to know which loan you have outstanding, what the amount outstanding is, if you are being charged interest or penalties for missing payments, etc. If you don’t organise your outstanding loans now, you will only be adding stress onto yourself because it will take longer for you to pay off your debt if it becomes disorganised.
If you have multiple outstanding loan accounts from different banks or lending institutions, this may add to confusion and make it more difficult to track down which outstanding payments need to be made first. It’s best if you can consolidate all of these loans so that they are easier to monitor and manage.
Make a note of outstanding amounts, outstanding fees and interest rates in a spreadsheet or in a journal that you can check when it is time to pay off your debt. Also, keep an eye out for any ‘late payment fees’ charged by your bank or any outstanding interest amounts that may need to be paid.
2) Make regular loan repayments
The easiest step you can take if you have outstanding loans is to make regular repayments so that at least some of your outstanding debt is being paid off every month. If you’re not sure how much money you should be putting aside for loan repayments, consider setting up an automatic transfer from your bank account on a set date each month to ensure repayment of outstanding balances on time. Also, if it is offered at your bank or lending institution, register for a Direct Debit Scheme which will allow them to withdraw monthly payments from your bank account on the set date each month. This is a great way to ensure outstanding payments are made without having to manually transfer money from your bank account every month.
3) Pay outstanding debt in full
If you find it difficult to make the payments on outstanding loans every month, consider applying for a consolidation loan which allows you to pay off outstanding balances over an extended period of time so that monthly repayments are more manageable. If this is not possible or you are unable to save up enough money despite making regular repayments, consider applying for an overdraft facility at your bank which will provide some short-term financial relief whilst also reducing outstanding interest payments over time. This may mean having to switch banks but can be another way of consolidating outstanding debts into one place while dealing with all outstanding costs simultaneously.
4) Contact your lender
You may be tempted to avoid your bank or lending institution, but your assigned customer representative is there to help you resolve outstanding financial matters. They deal with outstanding loans every day and are trained professionals that can look into outstanding fees or interest rate discounts to help resolve yours. You should consider reaching out to your financial institution if you have tried all of the above steps but are still struggling with outstanding debts.
5) Ask for help if necessary
Lastly, if none of these strategies work and you continue to struggle with outstanding debt, don’t be afraid to seek professional help from a third-party company such as a debt consolidation service provider who can review all outstanding financial commitments with one simple monthly repayment. With their assistance, you can reduce outstanding interest payments and save a lot of money in the long term. These are just a few tips to get you back on financial track and on your way financial freedom. If you are interested in a loan or need guidance with your outstanding loan, contact us.