Debt has unfortunately become a familiar problem to most of us. Every month we are plagued with loan payments that seem never-ending. But there are many different options for getting out of the money hole. Here are seven lesser-known ways to repay your loans:
1. Biweekly Payments
The majority of loans require you to make just one monthly payment. Instead of waiting an entire month to make your payment, put money towards your loan every two weeks to diminish its balance more speedily.
2. Round Up Payments
It’s common for loan payments to be the same amount from month to month. If your monthly bill is £250, consider rounding it up to £300 every month. It may seem like a trivial increase; however, over the course of many months it will add up.
3. Sell Miscellaneous Items
Over time we acquire many unnecessary objects like excess clothing, electronics and books. These things, which oftentimes sit around collecting dust, are worth money. Consider selling some of these possessions and using the funds acquired to pay off a portion of your loan.
4. Consolidate Your Loans
If you have more than one debt to pay off, you may want to consider consolidating your loans. This means combining all your loans into one larger loan so that you will only be required to make one monthly payment instead of several. This could give you access to several other alternative repayment plans, which may make your debt simpler to manage.1
5. Debt Relief Orders2
If you do not have extra income, do not own a home, and owe less than £15,000 on your loans, you may be eligible for a Debt Relief Order. Those who have lived in England or Wales within the last three years may qualify to have their debts discharged in as little as 12 months.Although a DRO can free you of your debts, there are restrictions if you are approved: You can’t manage a business without informing the business of your DRO, you can’t borrow more than £500 without telling the lender about your DRO, and you can’t act as director of a company.
The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.