It happens to the best of us – you take on a financial commitment only to find that you’ve bitten off more than you can chew. Times are tough and instant cash loans may be the only way to make it to the next month. If you’ve ever been in this situation, whether you’re in Auckland or anywhere else in New Zealand, this blog is for you. Here’s a list of tips that you can follow in the event that you can’t make your next quick loan repayment.

1) Create A Priority List to Follow for All Your Debts

All your debts are essential, but some will be more pressing than others. List them by priority so that you can pay off the ones with the most significant interest or most urgency first. For small wins, make sure that you make payments on debts with the lowest balance. Doing this will also maximise your emotional returns.

2) Contact Your Debtors to Negotiate Alternative Terms for Settling the Loan

It’s tempting to ignore calls and emails when it’s time to pay up, but this can be the worst thing to do in such a situation, and even worse, result in missed opportunities. Contacting your lender ahead of time and communicating your financial state with them can go a long way. Some lenders may be open to adjusting your payment plan so that it’s easier for you to make repayments perhaps over a more extended period. It’s worth noting that this may likely increase your interest rate you need to pay.

3) Try to Make the Payment Within A Few Days After the Due Date

We all want to avoid penalty fees on late payments. There are cases where repayment agreements make room for late payments. If your lender allows for late payments, try to get the money together and make sure that you stick within the grace period.

4) Consider Consolidating All Your Debt or Refinancing on Your Mortgage

You could also apply for a large personal loan to cover all your smaller debts. This way, you pay off everything in one place and at a single interest rate. You can also access repayment funds by refinancing the mortgage on your home.

5) Consult with A Financial Advisor to Formulate A Repayment Strategy

The biggest favour you can do for yourself is to ask someone who knows about finances what to do. It may cost some money, but it may save you more.

You may feel like you’re helpless now, but the best thing you can do for yourself is to avoid panicking and prioritise finding a solution. Always read your repayment agreement carefully beforehand so that you’re familiar with the consequences of late or non-payment.

Acorn Finance is a reliable provider of instant cash loans in Auckland. We can help you get out of your financial crisis with expert advice. Contact us today to learn more.