When starting a business, it is always a problem as to where you can get the capital to support your business. This problem becomes more difficult if you are starting out on your own. Although you can borrow money from your family or friends, it is ideal to get a personal loan to help you get started.
However, when you are in countries like Singapore where moneylender companies and other loan providers are strict when it comes to personal loan applications, you may need to locate other means to fund your business.
Loan providers would ask where you will use the money and depending on your credit background, you may find yourself facing rejections every time you apply. If your application gets accepted, you will still need to worry about managing it and do your repayments.
Managing one’s loans is easy if you know how to organize it properly. You can also do it on your own. If not, you can ask someone else to manage your payments for you. However, some people are not comfortable in showing others their current loan status, especially if you are at risk of paying them.
When you are at risk of bankruptcy, getting professional help is a must to get you back on track. You can even check online to get some ideas on how to manage your personal loans.
Here are some tips to get started on building your very own personal loan management plan:
Use Automatic Loans Repayments
If you want to maintain your current high credit record, you must be able to pay your loans on time or pay them at rate hours. Missing one payment on time can easily damage your credit record and may likely disable you from getting another loan.
Fortunately, financial institutions – moneylender companies and credit unions included – now have automatic financial systems online that can help assess potential loan applications and even enable automatic payments. When you register your account, the system can easily deduct your loan from your bank balance based on how much it is and when you want the automatic repayments to start.
Alternatively, you can also set up automatic loan repayments with your bank accounts. Some banks have included credited loan providers on their list of billers so you can pay your loans online or through their mobile apps.
Seek Loan Managing Advice Online
If you do not want to speak to loan advisers and counsellors for your loan problems, you can always check out their websites and seek their help there. Of course, each loan provider has different advisers and counsellors that specialize in different kinds of loans so you need to know what loan you have before you seek their advice.
However, all of them will help you get out of your loan dilemma. You can even seek their advice if you want to learn more about your loans and how you can manage them more efficiently. Their services are often free, but you can avail for a more personalized service for a certain fee.
Divide your money into various accounts
If you want to be able to revive your accounts and still pay your loans, you can separate your income to various banks and separate your loan payments from it. Even if the amount you put in these accounts is small, you can build up your bank accounts easily if you do not spend them.
Reduce your spending even when you have cash
When you need money for important payments or needs, reducing your expenses should always be your number 1 action. While you may have an extra fund that you can use for luxuries and excess items you don’t need immediately, it is best you save it to pay your loans.
When you pay off all your debts, that’s the time you can splurge a little and buy whatever you like.
Ask someone to monitor your money and serve as your wallet while you pay your loans if you can’t stop yourself from spending.
Negotiate with the bank or loan provider if you have issues
If you find yourself having problems paying your loan repayments or had been late, don’t immediately run away from your loan provider. If you explain your circumstances with the bank or your loan provider, they may be open to help you adjust your loans to make it easier to pay. They may restructure your loans to have a lower monthly payment or longer payment turns.
Allocate a percentage of your budget to loan payments
As you work and earn for your budget for the month, don’t immediately use it to pay all your loans or other debts. Budget your salary and allocate a percentage of it for your loans. Doing this would help you remember that you got monthly loan payments due and also cut down on unnecessary expenses.
Apply for Loan Consolidation
Paying different personal loans from moneylenders or banks can be quite confusing to handle if they are located in different places and have different due dates. Some loan providers offer loan consolidation packages to combine all your loans into one. As a result, you only need to remember one due date and pay the same interest rates.
Before you consider loan consolidation for your loans, not all loan consolidators can be trusted as some of them may attach extra fees without you knowing it. Make sure you ask around and do your research before approaching a loan consolidator or a bank to do a loan consolidation for you.
Pay Your Outstanding Loans First
Finally, you must consider which loans to pay first. If you have loans with higher interest rates, pay those first because it entails you are paying more monthly.
If you can haggle with the loan provider to reduce the interest rates, do it. Loan consolidation can also be done to reduce loan interest rates since you will only be paying all your dues in one bill.
Managing your loans is not really difficult if you take a step back and consider the available options that can assist you in paying your loans. Panicking immediately when you see yourself unable to pay your dues would not do you any good.
Take a deep breath and do your research on how you can manage your loans online. The ones above are just some of the ways that can help you manage your loans, there are more out there that can fit your financial status.
Do not lose hope! You can do this! Good luck!