Top 4 ways to pay back your loans faster
This is sponsored content for Nifty Personal Loans.
No one really wants to fall into a sea of loans. Unfortunately, there are instances in life when you just have no other choice but to call for a loan application.
Whether this be an emergency, your house mortgage, student loan, car amortisation, or even the piling up of credit card bills. Then, when you come face to face with these loans, it can seem like you're stuck in a never-ending rut of bills. You'll just want to get it over with and out of it-fast.
If this situation speaks so much to your situation right now, the good news is this isn't the end of the world for you. There are so many ways for you to effectively get out of debt more quickly.
This article enumerates some of these best strategies you can apply to pay your loans faster:
1. Bump your payments up
Bumping up your payments mean paying more than the minimum required monthly payments. If you can give it a little bit extra, this extra does add up annually.
For instance, say you have to pay $50 in monthly payments. If you can just sacrifice an extra 20 dollars you may have and pay $70 US per month instead, you won't even feel the difference in the sacrifice you made.
You may have had to let go of those unnecessary coffee runs, or perhaps purchasing that shirt that was on sale, but that you really didn't need just now. But, in the long run, you're doing yourself a favor. Not only are you able to speed up your loan payments by paying more than what's required, but you're also reducing the interest charged.
2. Make bi-weekly, or weekly payments
If the monthly payment seems like a too-big amount for you to cope with, then break it into smaller chunks. That way, you're sure to make a payment for the month, rather than miss out the entire month's worth of payments.
For example, you have monthly payments for your fast cash loans worth $80, break it into $20 per week. When you think of it as that small of an amount, it's less likely for you to miss out on a payment 'because the budget is tight right now.'
Supposing your budget does get tight at the end of the month, at least you've made a payment rather than none at all. This can also stop that temptation to just leave the loan alone, and wait for later.
3. Study financing options that other lenders may have
Studying financing options that other lenders may have means taking out an instant loan from another lending institution to pay off this existing debt. This may not make so much sense to you, but over the long run, it may actually be the better option.
The key is for you to compare the current interest rates of both loan options.
For example, credit card debts have quite a hefty interest rate attached. If you can take out a fast loan or any other loan that offers a lower interest rate, then do so. Then, use that amount to pay off your existing credit card debt. That way, you'll no longer have to suffer high interest rate of your credit card. This high interest rate could be one reason why it takes you so much longer to finish off paying your debt.
4. Live cheaply and stop using your credit cards
Once you've made that serious decision to start paying off your loan faster, this is also the most opportune time for you to start living cheaply. Not only does this means living within your means, but it also means letting go of any unnecessary purchases for now. You may also want to Google various tips you can apply to have a frugal way of life. You'll be surprised to learn that being frugal doesn't necessarily mean that you're going to miss out on so much in life simply because you're controlling your expenses.
Then, take your discipline one step further by refusing to use your credit cards. That way, you're not piling up one debt again after another, and just moving around the helpless cycle of debt. One use of your credit card today means that you're only delaying your ability to pay off your loans even more.
Conclusion
When it comes to paying off your loans faster, the key really is just in starting. Often it can feel like such a burden to even start it, simply because it's not one you like to face.
However, the longer that you prolong these debts, you're only making it even harder for you to have that motivation to pay it all off. Applying the tips above, all that's really left for you to do is to start. Remember that you're saving more money for yourself by making a wise decision today.
