Even if you're employed and have a steady paycheck, there can be times that you need to take a personal loan to help with a large expense. Once you've taken the loan and have a clear understanding of its terms, it's important to make a commitment to paying it back as quickly as possible so you'll only have to pay a minimal amount of interest. Paying back a loan quickly requires meticulous budgeting, as you don't want to make such large payments that you suddenly are short on money for your day-to-day expenses. Here are some simple methods that you can use to set enough money aside to repay your personal loan quickly.
Trim Your Lifestyle Spending
Some people who take out personal loans make the mistake of keeping their lifestyle consistent while trying to repay the loan, which can be challenging. While you still owe money, it's worthwhile to trim your lifestyle spending so that you can repay what you owe more quickly. This is possible in several ways. For example, if you eat lunch in a restaurant a couple times per week, pack a lunch on those days instead. Look at your monthly bills and think of ways to trim them. For example, buy less music online or consider even putting your TV service on hold for a month to save its expense.
Put Your Credit Card Away
Shopping with a credit card is easy — so easy that you can quickly accumulate a bill that is tough to pay. The last thing you want is a hefty credit card bill when you're working on paying off your personal loan, so think about stashing your credit card in your dresser for a month or two. Doing so will force you to shop with cash or your debit card, both of which can help you keep your spending under control.
Make Homemade Gifts
It can be stressful if you're approaching a month in which several people you know are celebrating birthdays. Instead of shopping for gifts and quickly blowing your budget for the month — and subsequently having trouble making that month's loan payment — think about making homemade gifts. The approach you take depends on your strengths. If you're an accomplished baker, volunteer to contribute the cake or some cupcakes for the party. If you're handy with household tasks, make up a gift certificate pledging your assistance for a couple hours of work around the person's home.
If you're in need of a personal loan, contact a financial institution like Lisbon Community Federal Credit Union.