How to Pay Off a Loan Faster

How to Pay Off a Loan Faster

Everyone wants to pay their loan off as quickly as possible, whether it’s a student loan, auto loan, or home loan, personal loan, or any other kind of loan. There are a couple of different strategies you can use in order to get your loan paid down quicker and get it paid off for good. We’ve listed some suggestions below on how to pay off a loan faster.

Here are the top 8 ways on how to pay off a loan faster:

  1. Pay a lot more than the minimum towards the balance of your loan and cut the overall interest you’ll pay. Try to double your payment, or even triple it if you can. By increasing your payment amount, you’ll pay the principal amount down quicker, and also pay less interest on the loan.
  2. Take any extra money and put it towards paying off your loan. For example, a tax return, a bonus check, money given to you as a gift, or any money you’ve won if you ever buy scratch-off tickets could go towards paying off your loan.
  3. Sell unneeded items in a yard sale, or online through Amazon, EBay, or Craigslist. Take the extra money you get and put it towards your loan.
  4. If you get an increase in your salary take the amount of the increase and put it towards your loan.
  5. Make an extra payment every quarter or every year to slowly get the balance down.
  6. Make bi-weekly payments instead of monthly payments.
  7. Refinance your loan to lower your payment and the interest.
  8. Take advantage of any kind of loan discounts you can get. For example, sometimes a small discount is offered on loans when you sign up for paperless statements.

We hope these tips are helpful suggestions for you when you’re trying to figure out how to pay off a loan faster.