Repayment tips
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 tips to help you with deciding whether to borrow or save:
- Only borrow the amount you need to
- Review your income and outgoings before agreeing the loan
- Look at the TAR - total amount repayable rather than 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
