Tips for Taking Out a Loan You Can Actually Pay Back

7664119_sBefore you move forward with taking out a loan for any reason, you must make sure that you have the income to honor the debt and manage it responsibly. While that may seem like common sense on the front end, many people make the mistake of obtaining a loan in the hopes that they will find a way to pay it off. Your job is to have a specific plan for paying off the loan before you sign the papers. Here are some tips that will help.

Identifying How Much You Can Pay Each Month

Most loans require monthly installment payments. Take a good look at the terms the lender is offering. Will the monthly payment fit into the household budget? What would you have to change about your spending habits in order to make the payments?

Fitting one more line item into a budget is not always the easiest thing, but it is easier than trying to figure out how to do it after the commitment is made. Before you sign those loan papers, make sure you can make the payment and still take care of the basics like food, clothing, and shelter.

Considering the Loan a Priority Debt

Priority debts are obligations that must be honored ahead of other obligations. Your rent or mortgage payment has priority over things like buying a new television or upgrading your smartphone. Before you move forward with taking out a loan, commit to making it a priority debt. Once the loan payment and your other needs for the month are covered, then you can feel free to have a little fun with the surplus.

Making an Extra Payment Now and Then

Even if you can only manage a couple of extra payments each year, do it. If you do have something come up, like a direct deposit that delays your paycheck from hitting the bank on time, you will not have to worry about late fees. Being a payment or two ahead will also cultivate favor with the lender, and increase the chances of being able to obtain another loan one the current one is settled in full.

Taking out a loan is serious business. Manage it properly and you’ll increase your credit score. Do a poor job and live with the consequences. The choice is up to you.

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Niiwin, LLC, d/b/a Lendgreen (“Lendgreen”), is a wholly owned subsidiary of LDF Holdings, LLC, a wholly owned subsidiary of the Lac du Flambeau Business Development Corporation, a wholly owned and operated economic arm and instrumentality of the Lac du Flambeau Band of Lake Superior Chippewa Indians (“Tribe”), a federally recognized Indian tribe. Lendgreen is organized and in good standing under the laws of the Tribe. Lendgreen is a duly licensed Financial Services Licensee of the Lac du Flambeau Tribal Financial Services Regulatory Authority, an independent regulatory body of the Tribe.

All loan application decisions are made at Lendgreen’s office located at 597 Peace Pipe Road, 2nd Floor, Lac du Flambeau, Wisconsin 54538 on the Tribe’s reservation. If your loan application is approved by Lendgreen, your loan will be governed by Tribal law, applicable federal law, and the terms and conditions of your loan agreement.

This is an expensive form of borrowing. Lendgreen loans are designed to assist you in meeting your short term borrowing needs and are not intended to be a long term financial solution. The Annual Percentage Rate (“APR”) as applied to your loan will range from 720% to 795% depending on your payment schedule, pay frequency, loan term, and the amount of your loan. Late payments and non-payment may result in additional fees and collection activities as described in your loan agreement and as allowed by Tribal and applicable federal law. Lendgreen does not lend to residents of AR, GA, MD, MN, NY, PA, VA, WV, WI or to members of the military or their dependents.

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