Posted on 2014-01-17
Everyone has debts in this day and age, whether it’s a mortgage, personal loan, a car payment, or credit card bills. What’s important is paying those debts off as early as possible, as it will save you on a lot of hassle and money in the future.
One of the first and easiest steps to paying off your debts early is to pay a little extra whenever you can. It can be as little or as much as you want, as long as you aren’t leaving yourself without any money for other necessities. It does require a lot of discipline to get started and maintain this practice. Money management on your payday loan can help you pay them off quickly so you can have more money to save for the future.
Making bi-weekly payments is another method of paying off a personal loan early. Instead of making a payment every month, you can make a payment every two weeks. This makes it easier for you to budget your money more wisely and gets you into the habit of making payments on a regular basis. This can have a dramatic effect on your credit rating especially; as it shows that you are dedicated to having your debts taken care of in a reasonable manner.
Instead of making a payment every month on your personal loan, dedicate yourself to making an extra monthly payment each year. For example, if you’re paying $800 a month each year, decide to make an extra $800 payment at some point during the year. It can be difficult to come up with the extra money, especially if you’re living on a budget. An alternative to this is to divide the amount you’re paying each month by 12 and adding the extra to each monthly payment. In the example given, instead of paying $800 a month, you can start paying $866 per month to take care of your debt much more quickly.
Your lender may also be able to help you find ways to pay off your payday loan much faster than the usual methods. You may have to pay additional fees for their assistance, so it’s important for you to consider whether this is the right method to go with. If you want to avoid fees, then there are alternative methods you can go with to pay extra each month. For example, you could set up automatic monthly payments for your personal loan with your bank.
Paying off your loan early is a great way to show lenders that you can be trusted to take care of your debts responsibly. It reflects well on your credit history, and you could reap the rewards of lower interest rates in the future.