It’s important to stay on track with your loan repayments so your credit report isn’t damaged and you're not charged any fees.
Here are four steps to make managing your loan repayments as easy as possible.
1. Include them in your budget
Treat your repayments like any other bill and account for them in your budget. This can help prevent you being left short the week before payday.
2. Set up a Direct Debit
Arranging for your loan repayments to come out of your bank account automatically can help ensure all your payments are made on time. The funds will come directly out of your account each month, so you won’t have to worry about forgetting to pay.
3. Check your account regularly
Make sure you have enough funds in your current account to cover any loan repayments. If you’re an HSBC customer, you can set up text alerts when your balance goes below a certain amount.
4. Download the app
Your lender may have an app to make accessing your accounts easy, no matter where you are.
If you’re an HSBC customer, you can download the HSBC UK Mobile Banking app to check your balance and track payments on the go.
5. Pay extra if possible
If you find you have some extra cash left over at the end of the month, you could overpay your personal loan. This can help you pay off your debt faster.
However, depending on the type of personal loan you have, you may be charged for paying back early. If this is the case, weigh up whether the money you would save in interest by repaying early is greater than the prospective charge.
Tell your lender if you can't make a payment
If circumstances change and you’re struggling to keep up with your repayments, contact your lender as soon as possible. They’ll be able to work with you to help you find a suitable solution. The further you fall behind, the more difficult it will be to get back on track, so it’s important to address the issue as soon as possible.
If you miss a payment, or you’re late in making a payment, you'll usually be charged a fee. This will also be reported to credit reference agencies, which may make it more difficult for you to borrow in the future.
If you think it’s a long-term issue, ask for some breathing space while you seek independent help. Organisations such as Citizens Advice and StepChange offer free confidential support and advice.
If you’re an HSBC customer, you can get in touch with us to talk about your options.