Usually individuals applying for quick loans have a cash emergency and need money the same day. One can use it for anything, like- paying the last-minute water bill to repair the leaking backsplash. Although one can use it for any purpose, these loans have competitive interest rates. It is ideal to pay the loan with the interest costs quickly, or else it may be difficult for your finances. If you are alien to the term, let’s understand the definition.
What does a quick loan means?
Quick loans are unsecured loans ideal for those needing urgent money without waiting for days or weeks. The facility helps the borrower get minimum cash within 30-40 minutes of the loan application. It is ideal only for pressing concerns or emergencies.
The loan does not mandate one to have a stellar credit history. The lender bases the loan approval on affordability and liabilities. One may get better rates if the liabilities are lower than the monthly income. Moreover, one cannot borrow over €5000 on these loans.
One may not get income if income is lower than the amount requested. The repayment term on these fast loans usually stays 12 months. You can split the loan amount and pay in monthly and weekly payments.
How should you maintain and pay quick loans?
Quick loans are ideal for anyone earning above the threshold of €2000/month. It implies that unemployed and retirees can also apply for these unsecured personal loans in Ireland from anywhere and anytime.
However, in the absence of collateral and ease of accessibility, the terms get a little stringent. One has to pay the loan back according to the agreement with charges and interest rates. If you have missed a few payments but wish to re-track and close the loan, the below-listed tips may help:
1) Set up a direct debit
If you have other loans like – car loans, holiday loans, student loans, and payday loans in your credit report, you may miss a new payment. Check for a direct debit facility here. It is an automatic payment setup where the person gets the money without you having to remember every payment. In this way, you never miss any payment or pay extra fees or penalties.
2) Identify the remaining balance and overpay
The smart way to clear debts is to be on top of payments and strategise further. Identify the total balance you have on the loan. Calculate any expected additional costs that you may have to incur due to missed payments. If the amount is higher and you are near the completion of the loan term, overpay some. Identify whether you can legally overpay or may be charged a penalty.
With us, there are no such costs involved in the loan. We prioritise your finances and the ability to clear the debt as quickly as you want to. You can overpay the amount if your income allows you to do so. Never do so if you can barely meet your requirements.
3) Prioritise your payments
It is a very crucial part of financial management. It is important to prioritise expenses like rent, utility payments, and urgent medicines you cannot skip. At the same time, it is important to cut back on other expenses.
If you spend the most on food, outside dining, and unnecessary subscriptions, halt them for now. You can use the amount to pay your short-term loans. Prioritising payments not only helps you budget right but also avoids additional expenses.
4) Pay atleast half the monthly payment
If you cannot pay the amount as per the loan agreement monthly, pay at least half of it. It would reduce the overall burden on you, plus the interest effect would not be much. Moreover, you may cast a responsible borrower impression on the loan provider.
Skipping payments can be dreadful for your finances and credit score. Thus, arrange a sum and pay as much as towards the loan. However, it should not impact your budget’s bottom line.
5) Look for ways to earn more
While you can pay a minimal amount towards the loan, it may cost you high interest. Thus, check jobs if your current budget lacks the flexibility to clear dues timely. Identify some part-time job opportunities or seek increment within the same company. Apart from this, you can:
- Do overtime ( if it is paid)
- Get a side gig that aligns with your hobby
- Tutor children in a subject that you share expertise in
- Sell old stuff on sites or social media
- Work as a freelancer
- Put the funds you receive from – gifts, tax relaxation, raises, or bonuses towards the loan repayment.
6) Consolidate debt by paying off some loans
Debt consolidation is an ideal way to move to the next life goal by paying off debts. In this, you can merge multiple debts like- quick loans, payday loans, student loans, holiday loans, etc., and get a single agreement stating only one payment per month or as per the agreement.
It reduces your liabilities and helps you manage the loan payments better. You can use the amount you saved from consolidating debts to pay your loan. Debt consolidation is the best way to eliminate the hassle of keeping tabs on every loan paying individually.
However, it may not be ideal for you if you struggle to make payments due to low income and credit history. You would need a guarantor to qualify for the debt consolidation loan. Go for the facility only if ideal for your finances and circumstances.
7) Contact the lender if you struggle to pay
Though the above ways may help you get on top of the loan payments, some may struggle with the same. If you cannot pay in any way, contact us for a quick solution.
We may either freeze interest charges for some time or change the agreement or payment plan for you. The new payment plan meets your existing circumstances and finances. You can also choose to stop the payments for some time. The interest charges run the same way.
Bottomline
These smart ways help you manage your quick loan repayments without falling back. Finances do not stay steady; one should ensure a plan to repay loans swiftly.
Choose the repayment term by identifying your payment potential, income, and other liabilities. Choosing a shorter one to save interest rates and skipping payments later may not be a good deal.
