Dealing with multiple loans at the same time can be a challenge if you don’t have an organized approach. Many people underestimate the difficulty of managing those payments, especially when it comes to a list of loans with vastly different interest rates. Sometimes, keeping track of all of that can be a nightmare, and it’s easy to forget a small detail that eventually leads to missed payments and other issues.
It’s not impossible to get out of this situation though – you just need to have a plan and stick to it. The good news is that you have plenty of resources at your disposal that can make this process easier. It’s still up to you to seek them out and take advantage of them though. But if you’ve found yourself in a situation where you’re dealing with multiple loans, you might not have many other options to begin with.
Make a List
Start with the basics – make a list of all your current loans so you’ll know exactly what you’re dealing with. Some people keep track of that in their own heads, believing that they will never forget anything important. Usually, it’s because they’re too afraid to take a look at the real list of their current credit lines. But having a list can actually be a motivating factor, as it can allow you to cross things off one by one, and see the actual progress you’re making towards getting out of your debt situation.
There are apps that can help you with the creation and maintenance of that list, and some of them are even designed for people dealing with situations of heavy debt and other financial problems. Look up what’s available and download something like that on your phone. It might even turn into a useful habit in the future after you’re done paying off your current debts!
Prioritize High-rate Loans
You should sort your list and have the loans with the highest interest rates at the top. This will allow you to know which payments to prioritize and how to plan your next moves with regards to repaying your total debt. Even if the payments on those high-rate loans put a significant strain on your finances each month, it’s better to get through that tough situation once and be done with it forever, rather than dragging it out for a long time with no end in sight.
Don’t forget the smaller loans on the other hand, and make sure that you maintain a balanced approach to repaying everything. That’s why we recommend making a list as we described above, which will come in handy even more once you start clearing some of those debts.
Debt consolidation is a useful service for people in your situation. It can allow you to combine all your current outstanding debts into one single loan which you can then pay off more easily. It’s a service offered by specialized lenders, and another benefit of using it is that you’ll often get extra tips on how to manage your finances better, and how to deal with the specific loans you have at hand right now. Keep in mind that debt consolidation isn’t always available – it depends on your financial situation and the debts themselves. If you have too many loans of different types, not every debt consolidation specialist might want to work with you.
But if you do have access to this service, you should definitely take advantage of it. Taking care of one single loan’s repayment is much simpler in the long run compared to dealing with multiple different loans, each with its own conditions and interest rate. Even though you’re paying the same net sum in the end, simplifying the process of paying it off in the first place is an important factor in itself.
Talk to Lenders
Sometimes, your lenders might be surprisingly understanding if you explain that you’re in a challenging situation. Dealing with multiple separate lines of credit is nothing new under the sun, and many people find themselves in that situation on a regular basis. If you’re willing to work towards the problem and get it resolved though, that already puts you above a large number of other customers in terms of the respect you’re going to get from your lenders.
With that in mind, you should attempt to have a conversation about the interest rates you’re paying and whether anything can be done to change the situation. Bring up details about the current state of the market if you have the time to do some research on that front – this can be a very convincing argument when you want to improve your conditions a bit. Of course, it won’t always work out, but it’s still worth a try.Leave a Comment