Tips To Pay Back Your Personal Loan Faster

Posted on March 20, 2017 by Guy Atkinson

When you take out a personal loan, you want to pay it back and fast.  There are many perks to paying off a personal loan, the biggest one being not having the burden of an additional payment every month.  It makes sense that you want to pay off any of your personal debt fast.  Here are a few tips to make sure that you don’t have to constantly be making payments on that loan, and can pay it off a little faster.

Make A Plan

The first tip to paying back a personal loan fast is to make a plan.  Sit down and do the math and see how much you can realistically pay each month on your loan and how many months it will take to pay it off.  It is always a smart idea when you are in debt to make a plan for where your money goes each month before you even get paid.  Make a plan for the payments on your personal loan and take simple steps to manage your money to ensure that your personal loan gets paid off faster.

Find Extra Money To Put Toward The Principal

You obviously always want to make the minimum payment on your personal loan but the only way to really get that loan paid off fast is to pay extra on it each month.  Whether it is $5.00 or $50.00, putting a little extra on that loan will mean that more will go toward the principal which translates to that loan getting paid off faster.  Sell something around the house on eBay or Craigslist, or pick up a few extra hours at the office or find a part-time job to start putting more money toward that principal payment.

Make Extra Payments

If you financially are able to, start making an extra payment a year (or even month).  If you start making extra payments you will be shocked at how fast that personal loan will go down and how quickly it will get paid in full.  One quick way to find out how quickly you can pay off your personal loan is to use the help of online resources like extra payment calculators.  This will end up showing you how much money you can save by simply making an extra payment every now and then.

The convenience of taking out a personal loan can be a huge draw but it makes sense to want to pay it down fast.  Monthly bills can really add up, the last thing you want are loan payments on top of everything else.  Use a few of these tips to help you pay off your personal loan a little more quickly.

Tip of the Day

Time management for Finance Professionals

time management

 

I’ve just re-read Richard Denny’s fantastic book ‘Selling to Win’, in which he mentions a time management technique that I learnt many, many years ago from an old boss of mine.

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