How To Effectively Manage Your Logbook Loan In Kenya

How To Effectively Manage Your Logbook Loan

If you are reading this, I assume that your logbook loan is approved; congratulations! The next step is to manage the loan well and maximize its returns to pay back the loan smoothly. Before applying for a loan, you know how to use the money; however, you may be overwhelmed with the distribution and sticking to the repayment procedure when you get the cash.

Logbook loans are one of the best ways to relieve financial pressure. It is quick and easy to get a logbook loan in Nairobi, and its use ranges from personal to business. Managing it, however, sometimes it’s quite a handful; here are a few tips for you to manage your logbook loan.

Create A Budget.

Economics assumes that consumers are rational, but you often find yourself spending money on things you shouldn’t have or overspent on some. After getting the cash, the first thing you need to do is create a budget for it, don’t fall victim to mental calculations and planning. A budget will allow you to account for every coin you spend, and you won’t be left wondering where the money went. Tracking your spending and avoiding confusion will make you use your money efficiently. When creating your budget, divide your expenses into broad categories, e.g., Pay Salary and Rent. A budget will make it easy for you to track your expenses. If you have no idea about budgeting, there are plenty of budget templates and mobile apps on the internet which you can use.

Pay On Time.

Once the budget is in place, making payments on time will be easy. Making your payment on time will make you avoid late fees and penalties. A good credit score resulting from early payments can reduce your interest rates. Early settlements also give you a buffer against late payment, and you will get peace of mind from that.

Pay A Little Extra Each Time.

If your loan provider’s policy allows you to pay more than the minimum required on each installment, it’s an excellent opportunity for your loan repayment plan. Whenever you get extra cash, the first thought should be towards paying your debts, don’t postpone it and let it be a thorn in your flesh if you can settle it. Paying more keeps you ahead of your loan terms and reduces the overall length of your payment plan. Paying extra will save you money in the long run and restore your financial independence even sooner. For a more in-depth explanation about how to repay your loan faster, we have a whole article about it; make sure you go through it.

Loans Consolidation.

Having a logbook loan and a couple of other loans can be challenging to manage and payback. Consolidating your loans into one is a great way to simplify your debt repayment. Debt consolidation means you take out a single, large loan that use it to repay all of your loans. Loans consolidation saves you the trouble of dealing with multiple lenders with different interest rates and requirements. Although this will make you repay your debts faster, you need to make sure you can make payments on the new loan. Contact Elevate Credit for a more detailed explanation about Loans Consolidation.

Managing a logbook loan should be hassle-free. When you follow the above steps and remain disciplined with your finances, you will be ahead of your financial situation, and success is guaranteed.

Elevate Credit offers quick logbook loans in less than 24 hours to sort out any financial emergency while still retaining the use of the vehicle. Applying for a logbook loan is made easy by applying on the website or using the Elevate Credit App available in the Google play store. You can also calculate how much you will repay using our loan calculator. The process is transparent, hassle-free, quick, and efficient.