How to Avoid Missing Credit Card and Loan Payments

Missing a credit card or loan payment can lead to late fees, a damaged credit score, and increased financial stress. But with a few simple strategies, you can stay in control of your finances and avoid unnecessary costs. Here are six practical tips to ensure you never miss a repayment.

1. Only Borrow What You Can Afford

Every time you take on credit, you’re committing to repaying that debt. Before applying for a loan or credit card, assess your income and expenses to ensure you can afford the repayments.

Key considerations:

Check your budget to confirm that monthly repayments fit comfortably within your means.

• Avoid taking out loans just because they’re available - only borrow what you genuinely need.
• Check your budget to confirm that monthly repayments fit comfortably within your means.
• Remember, responsible lenders will conduct affordability checks, but it’s always best to do your own assessment too.

2. Set Up a Budget

A clear budget helps you stay on top of your income and expenses, making it easier to manage credit repayments.

How to budget effectively:

• List all your regular expenses, including rent, bills, food, and travel.
• Factor in your loan and credit card repayments as essential outgoings.
• Use budgeting apps or spreadsheets to track your spending and adjust where necessary.

3. Automate Payments with Direct Debits

Setting up direct debits ensures your payments are made on time, reducing the risk of late fees and credit score damage.

Options for direct debits:

• Full balance: Pay off your entire credit card balance each month to avoid interest.
• Minimum payment: Avoid missed payments by setting up an automatic minimum payment. (However, aim to pay more than the minimum where possible, as you may be charged interest for what is still outstanding.)
• Loan repayments: If your creditor offers automatic payments via continuous payment authority (CPA), as The Money Platform does, it’s worth opting in for peace of mind. Other creditors may also offer direct debits, which is another great way to ensure that your payments are made on time!

4. Use Payment Reminders

If direct debits aren’t an option, set up reminders to keep track of payment due dates.

Ways to set reminders:

• Add alerts to your phone’s calendar a few days before payments are due.
• Use banking apps that send notifications when payments are approaching.
• Stick a physical reminder in your diary or on your fridge.

5. Build an Emergency Fund

Unexpected expenses can throw your finances off track, but having an emergency fund can help cover repayments if times get tough.

How much should you save?

• Aim for at least three months’ worth of essential expenses.
• Start small - saving even a little each month adds up over time.
• Keep your emergency fund separate from everyday spending money to avoid dipping into it unnecessarily.

6. Seek Help If You Need It

If you’re struggling with repayments, don’t ignore the problem - free debt advice is available.

Where to get support:

• National Debtline – Free and impartial advice for managing debt.
• StepChange – Expert guidance on repayment plans and financial management.

Both organisations offer confidential support and practical solutions to help you regain control of your finances.

Final Thoughts
Staying on top of credit and loan repayments doesn’t have to be stressful. By borrowing responsibly, budgeting effectively, automating payments, and preparing for the unexpected, you can manage your finances with confidence. And if things do get tough, help is always available.

Your next step is just a click away - take control of your financial future today.