Keeping up with several personal loan repayments can be challenging, especially when the due dates fall at different times of the month. You may find yourself paying one lender after payday, preparing for another loan repayment a week later, and trying to cover your regular expenses with whatever is left.

Having multiple loans does not necessarily mean you are in financial trouble. The real challenge is making sure your income can cover your repayments and everyday needs without leaving you constantly short of money.

If you are owing money to multiple lenders, it helps to start with a clear picture of what you owe, what you can afford to repay, and which debts need your attention first.

A few practical changes can help you manage your repayments more effectively and work towards paying off your loans.

1. Calculate How Much You Owe

Before deciding how to repay your loans, establish exactly how much you owe. It is easy to focus on individual repayments without considering how much they add up to each month.

Add the outstanding balances to determine your total debt. Then calculate how much you need to pay towards all your loans each month.

Having those figures in one place gives you a clearer picture of your financial situation and helps you make decisions based on what you can afford.

2. Review Your Income and Monthly Expenses

Once you know how much you owe, review your income and expenses to understand how much you can realistically put towards repayment.

Start with your take-home pay or other reliable monthly income and then subtract essential expenses such as food, rent, transportation, utilities, healthcare and other necessary bills. Then account for the minimum payments due on your existing loans.

The money remaining after these expenses determines whether you have room to make additional repayments or need to review your current arrangements.

If your loan repayments leave you with very little for everyday expenses, check your spending and identify costs you can temporarily reduce. However, do not create a repayment plan that leaves you unable to afford basic needs.

3. Prioritise Which Loans to Repay First

One common method to adapt when trying to prioritize which loan to repay first is the debt avalanche method. For this method, you’d continue making the required payments on all your loans while directing any extra money towards the loan with the highest interest rate. Once you clear that loan, you move the additional money towards the next loan with the highest rate.

This approach can help reduce the total interest you pay over time, provided you account for any fees and the specific terms of each loan.

Basically, the aim is to avoid neglecting one loan entirely while trying to pay off another. Keep up with the required payments as far as your finances allow, and use any extra money strategically.

4. Consider Loan Buy-Back or Debt Consolidation

Managing several repayment dates and different loan terms can become difficult. Depending on your circumstances, loan buy-back or debt consolidation may be worth exploring.

These arrangements can help borrowers manage multiple debts, but the terms and processes vary by lender.

Loan buy-back generally involves a new lender settling eligible outstanding loans with other lenders, after which the borrower repays the new facility according to the agreed terms.

Debt consolidation involves combining multiple debts into a single credit facility or repayment arrangement. Depending on the arrangement, the borrower or the new lender may handle the settlement of the existing debts.

The terms can overlap, and some lenders may use the names differently but before agreeing to a buy-back or consolidation arrangement, check the interest rate, fees, repayment period and total amount repayable.

5. Contact Your Lenders if You Are Struggling to Repay

If you realise that you cannot meet all your repayment dates, contact your lenders as early as possible.

Explain your situation and ask whether they offer any options that could make repayment more manageable. Depending on the lender’s policies and your circumstances, you may be able to discuss a revised repayment schedule or another available arrangement.

Ignoring calls or messages does not make the debt disappear, and missed payments may lead to additional charges or other consequences under your loan agreement.

6. Check Your Credit Report

When you have loans with several lenders, reviewing your credit report can help you understand the credit information associated with your borrowing history.

Credit reports may contain details about credit facilities and repayment records reported by participating lenders. Reviewing your report can help you identify information you may need to verify, including outstanding facilities or accounts you do not recognise.

In Nigeria, you can explore your credit information through credit reporting agencies such as CRC Credit Bureau and CreditRegistry.

If you find an error, contact the relevant credit bureau and lender to ask how to dispute and correct the information.

Checking your credit report does not settle your debts, but it can help you understand your credit records and address inaccurate information.

7. Avoid Taking on More Debt Without a Clear Plan

As you work towards clearing your existing loans, be careful about taking on new financial obligations that could delay your progress.

It is particularly important to avoid repeatedly borrowing from one lender to meet another lender’s repayment date without understanding the cost.

This can create a cycle in which your income goes towards repayments, leaving you with too little money for daily expenses and increasing the pressure to borrow again.

Owing money to multiple lenders can feel overwhelming, especially when repayment dates fall close together. However, understanding your total debt, reviewing your budget and creating a clear repayment plan can help you take control of the situation.