March 19, 2025
(Step-Wise Guide): How To Re-Schedule Payments To Clear The Debt Successfully?
By : Ellie Brown
Do you struggle to repay the dues on the payment date? The reasons may be a financial crisis, unemployment, or a change in income. Whatever the reason, you don’t need to skip the instalments. Instead, you can re-schedule it to pay according to what you can afford. It will help you avoid missed payment penalties and loan defaults. Read ahead to know how to re-schedule loan payments to clear debt comfortably.
Most loan providers provide the facility to re-schedule the payments. It helps you pay the bare minimum without affecting the basic lifestyle. It is better than paying some amount rather than accumulating interest costs. Whether you have lost your job or share a low income, the blog may help anyone who struggles to pay the monthly dues timely.
What do you mean by debt re-scheduling?
Re-scheduling loan payments is re-arranging the terms to clear the dues comfortably. The new schedule makes things more manageable for the borrower. Under this, the loan provider may either reduce the amount to pay, exceed the time limit or pausing the monthly payments. The person may also help you pay only a minimal amount. It is the best way to carry payments without fear of defaulting. However, paying less or pausing the payments means more interest costs. Therefore, discuss and choose the repayment period consciously.
What are the benefits of re-scheduling debts?
Re-scheduling payments helps a person gather better handover finances. It helps you manage finances and expenses without exceeding the budget. Here are other benefits of re-arranging the payments:
1) Reduces risk of developing bad debts
Structured and personalised payment plans helps you pay some amount on the debts. This reduces the overall burden on the finances and credit report. It prevents you from accumulating bad debt like credit card pending payments. The fees of defaulting or skipping payments for long could be high.
2) Helps you save time and money
Re-scheduling payments helps you follow a specific structure. You can set up direct debits that eliminate the need to check pending payments. Secondly, you can group and re-schedule the payments.
For example, by consolidating high-interest debt into affordable payments, you can save money on interest. Moreover, you pay less overall. You may get unsecured loans on an instant decision to merge costly debts. You must be ready with proof of income and ID to get one. It releases the debt pressure immediately.
3) Makes it easier to budget
The payments remain the same regardless of the months you choose to repay the dues. You pay a fixed amount that aligns with your comfort. It allows you to meet other liabilities or emergencies without surprises. It is advisable to keep this amount safe and different from your current savings account.
Quick and Easy steps to re-schedule payments effortlessly
Most individuals fear discussing payment issues with creditors. It could be due to confusion or the fear of not getting any possible solution. However, rescheduling payments emerge as a ray of hope here. Here is how you can re-schedule debt easily:
Step 1- Analyse your current financial situation
Understanding your monthly expenditures and liabilities helps here. You can know how much you can comfortably pay. Identify the aspects to cut expenses or downsizing on the living. For example- you have a debt of £25000 to repay with a salary of £45000. Here is what your monthly expenses may look like:
|
Expenses |
Amount (In pounds) |
|
rent |
8000 |
|
groceries |
1000 |
|
repairs |
500 |
|
Utility bills |
1200 |
|
Movies, dining out, shopping |
3000 |
|
Total |
13,700 |
Thus, you must pay £13,700 monthly regardless of the existing debt of £25000. Totaling up £25000 and 13,700 gets you £38, 700. It means you must repay £38,700 out of your monthly earnings of £45000. Here, eliminating unnecessary expenses for a while may help. For example, cutting 3000 from your expenses will lead to £10,700. It thus reduces your monthly bill. You can use this to cover up the debt payments. It is different from the basic savings.
Step 2- check how much you owe on each debt
After calculating your monthly expenses, identify how much you owe on each debt. Begin with the payments with the highest interest and penalties. Don’t forget to calculate the penalties and extra interest costs. It may seem like this:
|
Payments |
principal amount (in pounds) |
Amount after penalties and interest ( approximate) (in pounds) |
|
Credit cards |
5000 |
5500 |
|
Utility bill |
1200 |
1330 |
|
Payday loan |
1500 |
2200 |
Step 3- Calculate how much you can pay
After making the list of the previous and the new amount after penalties and interest, check affordability. How much can you pay on each debt? You can re-schedule payday loan payments to a later date by discussing with your provider. For example- if you are due £2200 on a payday loan and want to repay it in 8 months instead of 6 months, your payments may look like this:
|
Payday loan payments (in pounds) |
APR |
Amount to pay in 8 months ( in pounds) |
Amount to pay in 6 months ( in pounds) |
|
2200 |
8.0% |
2266.48 |
2251.62 |
|
Monthly Payment |
|
283.31 |
475.27 |
|
|
|
|
|
Therefore, you can reduce the monthly amount you currently owe by extending the repayment term. For example- you pay £283.31 if you want to repay the dues in 8 months against £475.27 as the monthly payment. However, re-schedule it for 8 months only if you cannot pay within 7 months. Likewise, you can calculate the total amount you can comfortably repay each debt.
However, certain life emergencies may again affect your payments. This time, you can counter it with quick loans in 15 minutes with no credit check facility. You may get it without any remark on your credit report. It helps you meet any urgent requirement, like updating your insurance policy, bike repair, or dental issues. You may get a fair amount to bridge the payments. It prevents you from disturbing the new payment setup.
Step 4: Contact and discuss your requirements
It is generally easy to calculate the amount you owe, expenses and the amount you can repay. Make sure to have clarity on this. Keep these statements handy when you discuss with the loan provider. Explain to him your current financial situation. You can even provide a written notice if you lose your job or face income reduction due to a serious situation. He may provide a new plan to carry on your payments.
He may even help you cut some liabilities under serious conditions like- lifetime disability, serious accident, or loss of a loved one.
Here is one of the examples of how your loan agreement may look like after renewed terms. He may change the repayment term, monthly payment, interest costs, etc.
|
Existing debt loan agreement |
(amount in pounds) |
|
Amount |
5000 |
|
Interest |
7% |
|
Monthly Payment |
643.90 |
|
Amount repayable |
5151 |
|
Total interest cost |
151.20 |
This is your current repayment structure. Here is what your new or re-scheduled agreement may look like:
|
New debt loan agreement |
(amount in pounds) |
|
Amount |
5000 |
|
Interest |
6% |
|
Monthly Payment |
639.14 |
|
Amount repayable |
5113 |
|
Total interest cost |
113.12 |
So, you can see that you don’t need to pay more interest, monthly amount, and interest payment. It is when the financial condition is serious, and credit helps. It is rare to encounter such a scenario. However, you may get one if you really cannot pay the dues.
Re-define your finances and budget to make space for monthly instalments. You can set direct debits from your salary account. It will help you repay the dues automatically. In this way, re-scheduling may help you ease the trouble and repay the dues.
Bottom line
When you struggle to pay the loan dues, try rescheduling it. It is the best concept when it comes to making your monthly payments more manageable. Identify how much can you pay on the dues against monthly liabilities. The blog helps you understand this better.
Next, contact the loan provider and discuss the provision to increase the repayment timeline. You can also analyse the strategies to reduce the repayable amount. However, it depends on your employment type, monthly earnings, liabilities, and personal situation.