Now that you’ve used your personal loan funds to cover an unexpected expense or major purchase, you’re ready to start paying your loan back. One of the benefits of a personal loan is the convenience of a fixed payment amount, but sometimes our customers are eager to speed up the repayment process.
In this post, we’ll share some tips for doing just that.
For the sake of transparency, it’s important to understand that your repayment schedule has an impact on the amount you’ll pay on your loan over time. The less money you borrow and the shorter the duration of time (i.e. the faster you pay it back), the less money you’ll pay in interest over your borrowing period.
Make an extra payment.
Making extra payment makes a big difference – even if you can’t do it every month. Maybe you received a bonus at work. Perhaps you were gifted some birthday cash. Don’t forget about that tax refund! If you find yourself with a little extra cash, making extra payments is a great way to speed up your loan repayment.
Think you can’t come up with the money for an extra payment? Think again! Consider all the little places you spend money throughout the month. Skipping a couple lunches out or a few Starbucks lattes a week can free up extra cash to go toward paying down your loan.
Round up your loan payment.
When it comes to money, little things really add up over time. When you round up your loan payment, you’re essentially setting yourself up to make little extra payments on your loan each month. Even if you only round up $10 a month, that’s an extra $120 in payments each year!
Refinance your loan.
One of the easiest ways to pay off your personal loan is to refinance it. The World team will work with you to determine a new repayment plan that works for you. This process is quick and easy. Ready to get started? Call your local branch to find out if you qualify.