Repayment tips
When taking out a loan, the most important thing to consider is if you can afford to repay the loan and interest. Defaulting on a loan can be costly.
Published:30 November 2023
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When considering taking out a loan, the most important thing to consider is if you can afford to repay the loan and interest.
There are multiple costs to defaulting on a loan so it is much easier to be realistic about what you can borrow. To get you started here are some general tips to help you decide whether to borrow.
- Only borrow the amount you need to.
- Review your income and outgoings before agreeing the loan.
- Look at the monthly repayments, the total amount repayable in addition to the interest rates (APR).
- Keep the term of the loan as short as you can manage.
- Check the small print of your loan. Are there early repayment penalties?
- Keep ALL documentation about your loan close to hand.
- Read your mail as important information about your loan will be mailed to you.
- Keep copies of all correspondence between you and the lender.
- If you have any problems making payments, get in touch with your lender immediately.
- If you have any queries about your loan ask right away and make sure you are asking the right person.
- Make sure you stick to the budget you have set yourself.