For many people, the first step to making ends meet and getting a handle on finances is to apply for a personal loan through Service Loan South. We’ve made the application process easier than ever before when you need money for essentially anything quickly and affordably.
But after you’re approved, the next thing to think about is how you will stay on top of your loan commitment and repay it according to the terms to build your credit. Here are some tips for how to manage a personal loan and be a responsible borrower.
Reassess Your Budget
When you receive your $500 to $1,500 personal loan to use for any reasonable purpose, rework your budget so that you know how much you’ll have left after each monthly payment. Understand your monthly cash flow and use a spreadsheet or budgeting app to keep track of your earnings and expenses.
Read the Fine Print
It’s important to read the fine print on your new loan terms before you sign off on it, but also, refresh your memory about these details as you manage monthly payments. Ensure there are no prepayment fees and consider interest accruals, the pros and cons of paying the loan off early, and fluctuations in your credit score.
Keep the Money Accessible
Many borrowers find it beneficial to put their new loan money somewhere that is easy to access and has no negative tax implications. A basic checking account is a straightforward place to put personal loan funds. Still, some people have greater success opening up a separate checking account for these funds to distinguish between money that can and cannot be spent.
Consider Automated Payments
Consider setting up autopay with your lender to keep you on track for making payments on time. This step will ensure that payments are drawn automatically from your account at the same time each month so that you don't have to remember to pay them.
Consolidate Your Debt
To keep your loan repayment process as simple as possible, consider consolidating multiple sources of debt together to have just one monthly payment at a specified interest rate. This strategy makes sense if you can get a better interest rate than what's offered for your current debts.
Ask Us for Help!
We are here every step of the way of the personal loan process, which means our involvement doesn’t stop once you sign the loan paperwork. We have conveniently located branch locations throughout Alabama, Georgia, Tennessee, and Texas to answer your questions about personal loan management and work with you to achieve financial stability. Contact the location nearest you today to get started!