What Can I give up in Order to Afford my Loan Repayments?

If you are struggling to meet your loan repayments then you may wonder what you can do. Obviously, finding a better lender with more competitive rates such as Cobra is one option. Alternatively, you could look at ways to save money. You will be aware that you will have to reduce your spending so that you have enough money left to be able to cover those loan repayments. It can be difficult though knowing what to do and where to start.

Switch suppliers and providers

It is good to start by seeing whether you can switch your suppliers or providers. This means those companies that take regular payments form you. It could be a bank where you pay for loans or insurance or an electricity supplier, broadband or phone supplier or a company you pay for a television or streaming service from. All of these regular payments have to be paid, but it may be that you can get them cheaper. It is therefore worth looking at other companies to see whether you can switch and save money. You may be tied into contracts with some, but once those end you can look around for cheaper options. You will hopefully not really notice a change in the service you are getting but you will pay less for it. You could use comparison websites to check if you are paying more than necessary. There will be companies that are not on comparison websites though so they might be cheaper still, so make sure that you check all of the options that you can.

Compare prices

When you are shopping it is wise to compare prices. Both within the shop you are in as well as between shops. It is very easy to just buy all of the things we normally do without thinking about looking to see whether there are any alternatives. We may even not bother to look at the prices. Therefore, it is a good idea to make sure that you start looking at the prices and thinking about whether you should switch to cheaper items. You may also be wise to compare retailers as there will be some that are cheaper than others and you will need to find the ones that offer the best value for money. You may not want to go with the cheapest one each time, but it may be wise to try cheaper items and see if you like them. Also checking prices and just being aware of how much things cost is worthwhile and could lead to savings.  You might find that while looking for cheaper items you find things that you prefer to what you regularly buy.

Cut down on luxuries

The first two suggestions will not really make a big difference as you will get the same things but at a lower price. However, this might not make enough difference financially and so may need to cut down the amount of things that you buy as well. A good place to start is to think about whether you really need the items that you are buying. If you ask yourself every time that you buy an item, whether you really need it then that could reduce what you buy. It is worth bearing in mind that you will be able to afford more once your loan is paid off so you may also ask yourself whether you can wait for the item until the loan is repaid. It will not be easy but as you get used to it, you might find that you enjoy the items that you are buying more because they are occasional treats compared with before when you were buying more things and spending more money.

Sell things you do not need

If you have things that you do not need then you could consider selling them. This could raise some lump sums of money which could help you out. Although these will be one off payments, you will then be able to use them to help you manage in the month or you could pay off a chunk of debt so that the loan is repaid more quickly.

It can be difficult to give up on things that we like, whether that is buying new things or getting rid of things we already own. However, it can make a big difference financially and can help us to get out of debt. If you try to reduce the cost of things without giving them up, by paying less for them, this can really help and then if you sell things you do not need then this will help as well. Then you may not have to give up as much. If you do need to give up things then make sure that they are luxury items that you do not need to have. You can save up for those items, buy them once the loan is repaid or just go without them. You need to ask yourself whether you really need them and want them, if you would be happy waiting to get them or if you can go without them.