With the present financial situation in the country, everybody is working towards becoming debt free. As they are drowning under an enormous debt load, almost everyone is desperately looking for ways in which they can get out of debt as soon as possible. While there is a scheduled repayment period which is set on each loan, there are definitely some ways in which you can repay your debt way ahead of time in order to become debt free sooner. But what are the ways in which you can do so? If you’re not aware of the steps to take.
Here are a few loan repayment tips for you.
- Make bi-weekly payments: If you have enough cash flow at your disposal, you can submit half the payments to your lenders after every 2 weeks instead of just making the simple regular payments. This will help accumulate fewer amounts on interest rates as your payments will be more often. By using this strategy throughout the entire repayment term of the loan, you can cut off several months as you might finish repaying the loan sooner.
- Round up the monthly installments: If you can round up your payments, this can be an effortless way of paying extra funds, without missing them. Just as you make bi-weekly payments, here too you don’t require too much extra funds to shave off a few months from the repayment term of the loan. You can even take steps of bumping up your payments with an extra $100 per month.
- Find some extra funds: Anytime you get to sell clothes on eBay, sell them as this can help you get some extra funds. Although you might think that the small amounts won’t mean a lot but these are the funds that will add up to become a large amount. If you have a small job, even if it’s a part-time job that pays you $100 per month, you can pay off the extra towards the loan.
- Make a single extra payment: In case you don’t have enough cash flow to make bi-weekly payments, you can even achieve the same consequence by making a single extra payment each and every year. Use money from a tax refund and help yourself pay down your loan faster. Each payment will increase a single extra payment per year.
Therefore, if you wish to repay your loan sooner than the scheduled time, you can take into account the above mentioned loan repayment tips