When you have just made a loan, the next consideration you must focus on is planning for your loan repayment. It is important that you be not remiss in sending your payment for your loan. You should make sure there is already a planned allotment of your cash for precise scheduling of payment.
And you should mark your calendar both on your desks, smartphone or desktop with your alarm system set way ahead of actual scheduled due date. Why should you not be late in loan repayment?
Three basic reasons why you should not be late in loan repayment:
Reason # 1. To avoid the stress of burdensome unpaid loan obligation.
Failure to meet loan repayment schedules results in added cost of personal loan in terms of penalties. Penalties you have not considered before and not included in your budget will put a strain to you especially when accumulated due to series of unpaid schedules.
These could be compounded depending on the fine print of the contract you signed and this will become an unpleasant surprise to you in the long run. What may seem a small amount initially will grow and eventually keep you tied to your loan paying them month after month for interest alone. That will keep you virtually a slave working out your but just to raise enough to pay the interest without reduction in principal for an indeterminate period until you are able to raise enough cash to pay in full your arrears.
Reason # 2. To avoid downgrading of your credit rating.
Banks and lending institutions rate their clients according to level or degree of credit worthiness. Missing or delayed in your regular amortization payment will lower your credit rating each time. And this is very important since this may not be the first time you will need an payday loan. The future may require that you take out even bigger loans and at crucial moments in your life, employment or business.
Same lending company may not be able to extend to you the much-needed greater loan amount on account of your dismal payment record. And even when you try to shop for loans in other banks and institutions you may eventually face a blank wall since credit institutions protect one another and have a common-pool of information of their respective delinquent clients.
Reason # 3. To avoid negative repercussions and effects in other aspects of your life.
Financial worries and anxieties do affect other aspects of your life including relationship with spouse, family or employment. Even your self-esteem and confidence in handling other issues of life can be affected when frequent calls from lending institutions disturb you at home or at your office.