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Crucial Traits That Can Help You Balance Multiple Loans

Multiple loans can be tricky to deal with. After all, it means keeping up with multiple deadlines and living on what’s left from one’s salary after the loan payments have been deducted. Imagine having more than half of your salary going to loans. How will you pay your bills? How will you replenish your pantry?

Crucial Traits That Can Help You Balance Multiple Loans

Aside from the financial strain, there’s also the negative effect of multiple loans on one’s credit score, as well as the anxiety and mental toll this can cause. So, whether you already have multiple loans or planning on doing so, think this through. Before looking going to an SG money lender, ask yourself first how you will be able to handle repayment of your loans. Evaluate your current financial capacity and behavior and see if you have what it takes. Here are the top 5 crucial traits you should have to effectively balance multiple loans:

1. Having Financial Discipline

Discipline is not something that you develop overnight. It takes hard work, time, and especially patience, when you are first starting to cultivate good financial habits.

Financial Discipline will be essential once you have to juggle multiple payments regularly. You will have to say no to a lot of things. You will have to sacrifice leisure especially if it would mean spending money.

Also, reduce the amount of temptation you are exposing yourself to. If you love online shopping for random things, cut down on it, as it is going to negatively affect your budget. Set aside a certain amount for your online purchases to ease you in. If you can, delete online shopping applications on your phone.

2. Having Organizational Skills

If you have multiple loans, you will have to answer to different people and lending companies. That means your loans have different terms and conditions. and your payments will be due on different dates every month or every quarter. Keeping track of all of them will require good organizational skills.

Upon signing the loan agreement, make sure to ask for a copy. Scan your copy so you can have a digital copy on your computer. This will come in handy when you need to check a condition or requirement on the loan agreement and cannot locate the printed document.

For your payments, create a loan payment spreadsheet. This can be a simple excel file or a handwritten table. Include the total amount of the obligation, interest rate, due dates and penalty charges. Having a clear view of your obligation and knowing exactly how much you need to pay can give you the clarity you need to be able to push through with regular payments. It can also motivate you if you see how much you already paid.

Lastly, to reduce the chances of default, you can ask your lender if they can autodebit your loan payment from your bank account. If your lender is a reputable bank, they may have this feature in place.

3. Effective Communication Skills

Communicating with lenders should not stop once you get the loan amount. Keep your communication channels open. Of course it is crucial that you ask relevant questions before you avail of the loan, but there are times when a question might slip from your mind. If that is the case, or if there is anything unclear in the loan agreement, you can contact them.

Another benefit of communicating with your lender is can ask for help in if you have trouble with your repayment. You might also be able to negotiate certain terms and conditions once the lender sees that you are a good payer.

Finally, don’t ignore messages from the lender, especially when you won’t be able to pay on time. It is natural to be afraid of the consequences, but in order to find a good solution, you will have to cooperate with your lender.

4. Ability to Prioritize

Defaulting from your obligations will put you in trouble, so pay off outstanding loans immediately once you have the funds. You can apply the debt snowball method and pay off the smallest loans as possible.

As for the the times when you won’t be able to pay all your loans on time, pay for the one with the highest interest rate and penalty charge. Or better yet, use thedebt avalanche method. This is when you pay the minimum amount on each debt and use the rest of the funds for your high-interest loan.

5. Ability to Cope with Pressure and Financial Stress

Keep in mind that loans are not for free. They come with interest. If you think you can manage the stress that comes with regular payments to multiple loans with your current income, you can start entertaining the option of applying for another loan.

If you have decided to take the leap, make sure you have healthy ways of coping with the stress. Letting your mental health suffer will also mean increasing the risk of getting sick and not being able to pay your debt. So take care of your physical and mental health. Clear your head, exercise, and eat healthy to avoid diseases. You will have to take care of yourself so you can continue with your obligations.


Unless it’s for a home, car, or studies, loans should be the last resort. So if you already have existing loan obligations, do not immediately apply for another one without having a comprehensive plan on how you will pay for your debt.

If you think you have the crucial traits to be able to balance multiple debts, you can start researching for the best loan options available. Compare interest rates and payment terms. Plot due dates on your phone’s calendar and make a recurring reminder to notify you of these dates.

Lastly, prepare your mind and your finances before taking on more responsibilities. This will include preparing an emergency fund and having a contingency plan in case the unexpected happens.

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