How to Pay Off Debt Successfully with a Personal Loan – Our Guide

Jan 30, 2020

As credit card bills, household bills, and other payables start to accumulate, what starts as small roadblocks might slowly turn into an uncontrollable situation. People that struggle with paying off an existing debt may think that there is no other way out of their situation. However, the truth is that there are several solutions to a loan problem. With the help of credit facilities, such as a bank or lending centres, one takes a personal loan to pay off existing debt successfully. 

Contrary to what others think, sourcing funds to pay an existing debt by taking out another loan is a logical remedy. This is not an isolated case since many people resort to this method to pay off their different loans. It helps by avoiding larger penalties when the borrower is unable to cope with previous debt.

If a loan problem is a deep-rooted problem, it’s important to tread carefully. Follow the tips below on how to pay off an existing debt using a personal loan.

Consolidate all existing debts

The best part about paying off debts with one short-term loan is the consolidation of all existing debts. By combining all the outstanding balances and paying them off in one sweep, the borrower no longer needs to worry about the different balances due, terms and conditions, and interest rates. By obtaining a short-term loan, the borrower has the chance to customise the payment plan to suit their needs. This makes the debts easier to manage with a more workable schedule. Best of all, there is only one repayment schedule every month, instead of the overwhelming number of bills.

Make a strict payment schedule

Short-term personal loans don’t require much of a long commitment. This means that the schedule for payment won’t need to extend for years. After paying the loan completely, the borrower moves on without waiting for years. With only one outstanding amount to think of, it’s easier to keep track of the impending due date. A borrower must plot the payment due date on a calendar and stick to it as strictly as possible. This will prevent high penalties that accumulate due to late payments.

Find a Credit Facility that Offers Fast Cash

The difficult part about having accumulated debts is trying to manage different due dates and interest rates. If unpaid, the different interests are added to the outstanding balances, which makes the total debt even larger. To avoid this snowball effect, act on the problem as soon as possible. Find a credit facility that offers fast cash, without the long application process or tedious credit score investigation. There are available credit facilities that guarantee the payment right away, without having to submit a collateral. 

Conclusion

A short-term loan is a great remedy for putting a stop to the accumulation of debts. Hoopla Loans offers short-term loans that guarantee approval within the same day. It is an online loan platform that offers safe and easy loan matching services with a fast and secure loan application. Without the need to check the credit score, the online application process only requires proof of employment. 

If you’re in South Africa, get in touch with Hoopla Loans today to secure a short-term cash loan in the fastest and safest way possible. We’re happy to help.