An individual should use every trick in his or her disposable to save money, increase her or his income while working toward becoming debt free at a faster rate. The following are the best strategies or ways a person can employ to pay down debt quickly, student loans, car loans or and kind of debt quickly:
Bi-Weekly payments should be made
Half the fees should be submitted to one’s lender in every two weeks instead of the routine which is monthly. In the process, an individual will accumulate less interest since the payments are applied more often. An additional will be paid since there are fifty-two weeks in a year which is the same as twenty-six yearly installments. One could shave off several months during of repaying the loan. An individual should discuss with the lender before making the bi-weekly payments since one may be charged for any additional payments or paying off the loan balance before the stipulated time.
Payments should be rounded up
An effortless way of paying extra without missing the funds is by rounding up an individual’s payments. The extra are not required to settle the dues in a few months of the term of one’s loan. A significant amount of money is added over time, and in the process, a person can save money on interest and period of one’s loan is reduced or reduced.
Find additional money
Small amounts like fifteen dollars or twenty-five dollars might not seem like a lot; they add when an individual is settling his or her debts. For the people who have a part-time job that an additional of hundred dollars on a monthly basis, put the amount of loan. An extra sum of money will be paid in a years’ time.
One additional payment should be made
For the individuals who do not have the cash flow to commit to bi-weekly payments, the same result is attained by paying one additional payment every year. The money from bonus from work or a tax refund can be used by a person to aid pay down one’s loan quickly. One can also divide his or her monthly payment by twelve and the amount got should be added to all future payments.
Loan should be refinanced
Refinancing is lowering an individual’s payment, saving interest and paying off one’s loan for half the duration. Super low-interest rates on car loans and mortgage loans are offered by the majority of credit unions and local banks.