What To Do When Money Is Tight And A Loan Payment Is Coming Up
Getting a personal loan can help you with the ability to pay off a big purchase or take care of a major issue that has happened. Personal loans are dispersed in one lump sum and are most often paid back in smaller sums over the course of time. If you are paying off your personal loans just fine but hit a snag, you may not be sure on what steps to take. If money is tight due to a missed paycheck or an emergency, but you owe on your personal loan soon, you will need to make a plan on how to deal with the tight budget. Here are three things to do if you are tight on money and a loan payment is coming up.
Determine if you can make a smaller payment
Some personal loans will allow you to pay different amounts depending on your means. There are times where the minimum payment and the preferred payment are different. Speak with your personal lender and ask if there is a lower payment that you can make for the money. You may even be able to make a smaller payment if you pay right before the deadline in order to extend the payment time. Speak with the lender to determine if you will be able to make a smaller loan payment just once and remain in good standing.
Restructure the bills
Shuffling the bills is one of the fastest ways to get a little extra time when it comes to personal finances. If you can push a bill back without a shut-off notice or without a late fee, you may be able to make the personal loan payment and still not ruin your monthly budget. For some bills, such as electricity or credit cards, you may be able to stretch out the time you pay seven days or even two weeks before you are hit with a late fee. This can allow you to get to the next paycheck without worrying about your budget being stretched too thin.
Let the lender know to expect it in 30 days
Most loans are not reported as late on your credit report until you hit the 30-day mark of being unpaid. If you cannot work out your budget to pay the loan back on time, you should call ahead and let the lender know the day that you will pay. Paying on that date and before 30 days late will keep your credit report and your good name intact.
For more information, contact a company like US Community Credit Union.