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Monthly Loan Payments on Saving Accounts

By Edited Nov 13, 2013 0 0

Is it possible to make monthly loan payments on saving accounts? Let us assume that you have taken a loan from a lender and you have been informed of how much you are going to be paying every month. Now, lets us see how you can make the payments; one way you can do that is by committing the monthly payments from your current account which receives your salary every month end. This way you can ensure that the loan payment money is always deducted from the account with your direction from you to your banker.

Another way is by you making the payments personally every month date that is due for the payment to be made. However, by doing that let us just be honest that it may be hard to successfully do it. At times you might forget and it lands you into trouble with the creditor while other times you might be overwhelmed with needs that require you to spend most of your money. If you do this and cannot make the payment on time, this still lands you into trouble. Your creditor will not want to hear any of it when you default your obligation to settle the loan unless you gave him a reason quite early in advance that you might not be able to make the payment every month end as needed.

But even as this is true, your ability to repay the loan is what matters most to the creditor before he or she grants you the money. If for some reason the creditor cannot see this, you might miss the loan or get a small value of money than you wanted. So, the reason that you give the creditor for not paying back on time cannot be just any reason. Maybe things like unexpected unemployment or sudden emergency need to spend the money.

However, one more way you can make sure that your monthly loan payments are made on time without fail is through your saving account. If you have saved enough, money in your account then after getting the loan, you can direct your banker to make the payments from this account when they are due. The loan payments can be deducted from the balance of the saving account and as long as there is money, every date the payment is due it will be done automatically by your banker. This can even strengthen your relationship with your creditor because you never default. Monthly loan payments on saving accounts can help maintain a good credit history.



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