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The Dos and Don’ts in Handling Your Loan

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 Picture this: you need to get a loan for a specific purpose (you want to borrow money or want to finance an asset you’ve always wanted to get). You go to a lender, apply for the offer of your choice, and eventually get accepted. In a matter of days, you get what you borrowed or financed.

What’s next?

The short answer is to use it up, but at the same time manage it, and then begin paying off what you owe every month. How you manage your loan is necessary for the sake of your finances and the asset involved.

Here are the things to do and what not to do when handling your loan.


What do you need to do while you still have the loan in your hands? Here’s how to manage it effectively:

Do: Budgeting

This is perhaps the most important rule for a borrower. Begin your budgeting. You’ll be using a portion of what you earn to pay off the loan, which can be costly. Everyone has their living expenses to pay off, such as housing, electricity, and water bills, or maybe their internet subscription. It’s crucial to balance how much you can spend and save out of what you earned.

Doing this is vital for several borrowers, such as those with loans with a non-fixed interest, individuals financing a house or a vehicle, and people having more than one loan. Budgeting involves the loan itself and the other expenses that come with it, such as the varied interest rate (which can increase from time to time) and the other expenses that come with housing and vehicles, like bills and gas.

Calculate how much of what you earn has to go as payment for the loan. In turn, you need to recalculate your expenses. Could your monthly expenses manage it? If not, you could try adjusting how much you spend on other things to make ends meet.

Do: Mark Deadlines

Another thing you must do while you manage your loan is always to keep track of your deadlines. Most loan payments are made monthly, which can be a short time, especially for those struggling. And within that month, you need to note how much money you need to save to make the payment and even estimate the time it takes to obtain the money.

You may note your deadlines by just marking your calendars or making smartphone reminders. You could probably even do some form of autopay with your loans. Alternatively, you can also take note of grace periods in case of scenarios where you might need a little more time to make your monthly payment. Grace periods often take 15-30 days.

Do: Keep in Touch With Your Lender

Do you have any trouble understanding the terms of your loans? Or would you like to request something regarding your payments? If so, you need to communicate with your lender. It’s essential for both you and the lender that you have understood the loan terms, and they‘ll be delighted to communicate with you.

Additionally, your lenders are also happy to help you with whatever concerns you have regarding your loan. You may negotiate with them should you be stuck in a poor financial situation, and they can provide you with better options.

Ultimately, always know the different ways in which you can contact them. For example, online lenders always have their contact details on their sites. Websites like CreditNinja.com usually have their phone number or email address at the bottom of their homepage.


As much as you need to do some things while managing your loan, there are also things you shouldn’t do. The following are the things you must avoid doing while handling your loans.

Don’t: Get Other Loans

This is a discouragement given to some borrowers, especially those in huge debts. Unless you can afford another one with ease, do not get another loan while you currently have one or more with you. This is all due to the simple reason that you may not be able to pay off several debts simultaneously. It’s a risk for both the borrower and the lender.

It’s best to apply for loans you’re sure you can afford on top of all your expenses. Having more than one is typical, but if you’re convinced (which you have to) you can’t afford another one in this particular situation, it’s best to stick with the ones you have. Pay off your debts before you think of getting another one.

Don’t: Ignore Your Account

You may be busy saving some of your income to pay off your debt, but have you been checking your account? Taking a peek from time to time is a way for you to check for updates, promotions, and notifications regarding your debts. This is to make sure everything is alright on your part. A few glances in your account online is enough.

Other things you shouldn’t ignore are notifications or messages sent to you through your contact details. Sure, your lender may send you promotional content in your emails, but that doesn’t mean you should sleep on all content being said to you.

There may be times where you need to be alerted to pay on time, or there may be incoming maintenance on certain working days. Keep an eye on those for potentially important news.

To Sum it Up

Managing a loan is no easy feat. You need to constantly see to it that you can pay off the debts on time and check-in with your lenders from time to time. Don’t take having a loan for granted, and always check what your lender has in store for you in your mails. Always see to it that you make the most out of your loans.


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