If you are looking to get debt-free this year, you’ll want to know how to pay off your existing loans as soon as possible. Especially if they have been hanging over you like a dark cloud for years, it would be an enormous weight off your shoulders if you were finally able to get rid of them. Easier said than done, of course, but it is possible. In this article, we will give you some advice to pay off that debt faster, moving you one step closer to financial freedom.
Pay More Each Month
If you are in the position to pay off more than your regular payment, then do it!! This includes rounding up a payment to something with zeros, or making more than one payment each month. A quick phone call to your loan provider or an adjustment with your online banking will accommodate anything extra you are able to pay. Budgeting is still important of course, so don’t pay anything more unless you are sure you have the funds to accommodate it. Still, if it is possible, you will cut down the term of your loan considerably if these extra payments are made regularly.
Transfer Your Loans
If you have multiple loan payments each month, it’s worth reducing the debt (and the interest rates) by either consolidating your loans into one easier to manage payment each month or refinancing your loan with another provider. In either case, ensure the interest rate is less than you currently pay. Earnest student loan refinancing has established itself as a leader in the industry, offering competitive rates and excellent customer service. Doing your research is essential, whether you transfer by consolidating or refinancing, as you don’t want to be in a worse financial position than you currently are. This article on student loan refinancing is helpful, as you can apply it to whatever situation you are in, but shop around, and seek advice from an accountant if you aren’t financially savvy.
Look For Discounts
There are often ways to make savings on the interest you pay each month, so consider how your loan provider can offer discounts. Going paperless is one way, as you will also be saving money for the lender (as well as saving a few trees). You will also pay less if you opt to pay by direct debit each month. You should also shop around and look at other loan providers. If you don’t want to go through the hassle of changing your provider, you can still let your current lender know about the great deal you have found elsewhere, and they may offer you a previously undisclosed discount to keep your custom.
Boost Your Income
By boosting your income, you will be able to use any extra money you make into making extra payments on your current loan. For example, you might consider taking online surveys in your spare time, or selling old books or DVDs on Amazon or eBay. A part-time job to supplement your current income may also be a good idea, but if you don’t have the time, you could at least take on a few odd jobs for other people, such as dog walking or childminding. Even small amounts of money add up, so don’t turn up your nose at anything if it will help you pay off your loan faster.
Stop Spending Money
Other than your basic living needs, your loan(s) need to be the priority. Therefore, look for ways to save money, be that shopping around for cheaper utility providers or curbing your impulse to squander your cash on anything that can be considered a luxury. Here are some other insanely easy ways to save money, so have a read, and put all the extra cash you save into paying off your debts.
Debt is a headache we can do without, both literally and figuratively. Getting rid of it will ease your stress, as well as freeing up your bank balance to put your money to better use. We hope our advice helped but always speak to a charitable debt organization if your debts are getting on top of you.