Doing Businesses The Right Way
As you work your way in paying your debt and becoming free from it once and for all, probably you have tried virtually any other way to save money, increase your income and pay it faster. If you want to make loan repayment less stressful and challenging for your finances, then the points below can help you out.
Tip number 1. Make biweekly payments – it is wise that you automatically make half of the payments to the lender every 2 weeks rather than the typical monthly payment. By doing so, it will help you accomplish 3 things including less interests as your payments are applied more often, you’ll pay extra payment as 1 year consists of 52 weeks and doing this for the duration of your loan shave off months.
On the other hand, before you get to do this, you have to talk this one with your lender. It’s because of the reason that there is a chance that you may be penalized for extra payments or paying your balance earlier than expected.
Tip number 2. Round up your payments – as a matter of fact, rounding up your payments help you to make payments become effortless and effective. Much like paying loans biweekly, you don’t need lots of funds to slash several months off the term of your loan. A simple example for this is if you have to make at least 289. 84 dollars auto payment monthly but chose to make 300 dollars as you have rounded it up, then it will give you an extra of 10.16 dollars every month or a total figure of 121.92 yearly. Automatically, this is lessened to your payments upon the last term of your loan.
If you want to, you can also go a step further and amplify your payments by adding an extra of 50 to 100 dollars a month. For the said period, rest assure for it to add a significant amount that then lets you shorten your loan and save on interest.
Tip number 3. Make one additional payment – let us say that you can’t commit to making bi-weekly payments due to your cash flow, that would not be a problem actually as you can still do this by simply making an extra payment annually. You can repay your loans faster by using cash from your work bonus or even tax refund. There is another way of doing this and it’s by dividing to 12 your monthly payments and add the quotient to the payments you are set to make for the rest of the months.
Repaying your loan can become lighter and easier if you will follow the aforementioned tips.
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