In today’s gig-driven, project-focused economy, loans have become a part of everyday life. In 2017 alone, £191bn of personal loans were taken out in the UK – an increase of 31% from 2012. And of course, with an increased number of loans comes an increased number of repayments. These days we all know someone struggling with repayment anxiety, and the fear of losing control can turn people off getting the finance they need to move forward with their goals and objectives, especially when it comes to payday loans.

However, it doesn’t need to be this way. With a careful approach and a few sensible precautions, loan repayments become nothing to fear. We take a look at some of the best and easiest ways to keep on top of your repayments and enjoy the benefits without the stress.

Treat it like part of your job

Whether you have a traditional job, run your own business or work freelance, you’ll no doubt be used to solving problems and maximising efficiency when it comes to work. In spite of this, though, most of us don’t apply the same rigour to our personal lives. At work, we look to make savings wherever we can, find the quickest route from A to B, and adapt inefficient systems. At home, many of us are content to bury our heads in the sand and ignore problems – one of the main reasons people struggle with loan repayments. Treating it like part of your job could help you to feel more in control and tackle the problems with less fear.

For a start, find out how often you can make repayments, and consider making yours more often – this can help reduce interest charges. Similarly, making larger repayments will end the loan period more quickly and reduce overall interest, but be sure to check a loan early repayment calculator to work out how much you should add on. Finally, think about whether you could either pay your loan off with your savings, or refinance with a more affordable loan.

Improve your credit score so consolidation is an option

Of course, consolidating your debt is only an option if you are likely to be approved for a new loan or Credit card, and this all depends on your credit score. For that reason, while it may not seem like a priority for repayments, it’s a good idea to improve your score – you never know when a good refinancing opportunity might come up. There are a number of ways to do this, and it’s not hard if you’re careful. You should start with a credit check, as this will let you know where you stand. Experian and Equifax both let you check your credit score quickly and easily online.

Moving forward, the next logical step is to clear up as many debts as possible. You may find it useful to concentrate on the debt that is costing you the most – unarranged overdrafts, short-term loans and credit cards. However, credit cards can be useful for credit scores as well – if you pay them off regularly, they can show that you’re capable of using credit responsibly. This can actually help improve your score, so that when you want to take out a new loan or card, you may be more likely to be approved. Finally, get on top of your regular outgoings – use standing orders to avoid late payments, as these can lead to damaging charges and CCJs.

It’s worth remembering that consolidating isn’t a magic bullet either. While it can help, it can also just provide space for more debt, if you don’t clean up the behaviour that was causing the debt in the first place.

Use Apps and tools to stay on top of your loan

There was once a time when only a trip to the bank or a long phone call would let you know how much of a loan was left to pay off, and whether you could change your repayment plan. Nowadays, though, there’s a wealth of apps and tools to help you keep track of your loan position.

The most useful of these come directly from lenders. Lending Stream’s app, for example, lets you manage your repayments, check your balance and apply for an additional short-term loan, giving you complete control whenever you want it. To complement this, budgeting apps can help you budget carefully, ensuring that you don’t miss a loan repayment and that you keep control of your spending to avoid going further into debt. You can also set them to pay you your salary on a weekly or fortnightly basis if you find it easier to budget for shorter time periods, and to pay a fixed amount into a savings account so you’re not faced with the temptation of spending more than you planned.

Ultimately, the ability to avoid repayment stress is always in your hands: cutting out unnecessary, inefficient practices will leave you lean and agile; maintaining a good credit score will allow you to refinance or get another loan to cope with emergencies; and using cutting-edge apps to manage your loan and control your budget will ensure you never lose sight of your financial situation. Approaching a new short-term loan with these strategies will take away any stress and uncertainty, leaving you free to put your money to good use in achieving your goals.

If you’re having financial problems and need more information or advice, you won’t find all the answers on this blog page. Instead, take a look at the government-funded Money Advice Service (https://www.moneyadviceservice.org.uk/en), who provide free and impartial money advice.

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