Most loans will have a monthly repayment plan that would have been communicated by the lender at the start of the loan agreement.

Two of the ways to manage loan repayments include Paying Extra and Extending Repayment Period.

• Paying Extra: This means repaying additional sums to the lender beyond the amounts already agreed in the loan repayment plan. The additional amount goes towards reducing the total amount owes, and often reduces the total interest payable on the loan.
  
  Paying additional amounts can be particularly useful for borrowers with seasonal income, or who happen to come across additional disposable income.
  By making extra payments, you can become debt-free sooner and save money in the long run.
  
  Please note – the lender may or may not reduce the total interest due on the loan, even with the ‘fast-track’ payments. It all depends on the lender, and the type of loan.
  Remember to check your loan agreement to see if there are any fees for paying extra.


• Extending Repayment Period: Sometimes life gets difficult, and you might have trouble making a loan payment on time. In those situations, it is advisable to contact your lender and explain the situation – they may be able to give you more time to repay the loan, or even adjust your monthly repayment to something more affordable.
  
  Reaching an agreement with the lender will help you avoid being in default and paying penalties.
  
  It is important to note that repayment extensions should only be used when necessary, as they will make your loan last longer, and increase the total interest that you pay.

Paying extra and asking for extensions can help you manage your loans. By signing up to MoniCenta, you can access these features and manage your loan repayments more efficiently.

MoniCenta financial services partners are reputable and reasonable. They are committed to responsible lending and borrowing.