Couple facing a financial problem, failing to pay loanI’m Having Trouble With Loan Payments. What Should I Do?

If you’re having difficulty with loan payments, you’re not alone. Getting out of a bind is not as easy as snapping your fingers. But there are some things you can do to get back on track. When you can’t make a loan payment, Quick Loans identifies some things you can do:

Short-Term Fixes

For short term results, you may have to spend less money and earn more. Here are some things you can do to help:

Prioritize Payments

Not paying your home or auto loans could result in eviction or having your vehicle repossessed. To avoid these dilemmas, keep making payments for as long as you can. As you list out your loans, prioritize your health and safety first. Then, think about which loans to stop paying, such as personal loans and credit cards. Nobody wants to see their credit damaged. However, it does not cause immediate inconvenience, like losing your home or car would.  

Talk with Your Lender

If you anticipate having trouble making payments, communicate directly with your loan lender. They may offer to let you skip several monthly payments or change your due date. You might be able to arrange a settlement, but it will hurt your credit score. Nevertheless, this is an option if you can assure your lender that you’re unable to make payments.  

Long-Term Plans

It’s essential to have a long-term plan in place to keep your finances in order. When you stay on top of the bills, it not only minimizes stress but also allows you to move on to future goals.

Have Emergency Savings

Emergency savings are essential for everyone to have. You never know when you could be in a jam, which might add to the difficulty of making loan payments. We recommend having an emergency fund with at least three months’ worth of expenses. You’ll need to spend less than you earn to build this fund, but the extra cash will help you pay bills without delays and avoid major issues.

Watch Your Spending Habits

Sometimes our spending habits can get a little out of control, and it’s our responsibility to manage them. To improve old habits, monitor each purchase you make for an entire month, including annual expenses (insurance, property taxes). This way, you’ll note where your money is going, and you can make wiser spending decisions moving forward.  

See How Quick Loans Can Help You

At Quick Loans, we believe that you deserve better than a payday loan. That’s why we offer installment loans, installment title loans, and auto finance loans with longer terms and lower rates than your typical payday loans. Apply for a quick loan today!