If you're someone who is paying back loans right now, you'd probably relate to this - constantly calculating how much interest you're paying, how many years or months left for your loans to be done, etc.
Giving a huge part of your salary to repay loans can be a little disheartening, especially after you're done with the excitement of buying that new car or the new house.
However, not all loans need to be paid diligently till the end. Quick cash loans online can also be paid back faster than the promised time if you try to be smart about it. There are so many ways you can repay your loans faster, thus reducing the amount you pay as interest and also, the number of years to complete your loan.
1. Earn more, Repay more
Most employees get a hike in their salary once a year and when you do, make it a point to add a good portion of your increment to the amount you repay every month. This way, you're loan amount will reduce faster and you will not feel like you're losing out on much because you'd already have been running your house with the amount you used to receive previously.
2. Bonuses? Straight To Your Repayment Fund
Festival bonuses and any other big fat bonus that you receive should go straight into your loan repayment fund. Though this might seem difficult to do, a little bit of discipline in things like this could go a long way in helping you save more in the future.
3. Round It Up
Loan installments usually tend to be in numbers that aren't exactly rounded. For example, if your monthly installment is $87.5 dollars, paying $100 dollars a month is not going to make a big difference for you every month. But it will reduce your loan amount when calculated for a year.
4. Find Ways To Make Extra Cash
You can have a garage sale, you could try selling off items that you don't need on ebay or other sites and use the extra money to repay your loans faster. There will always be a way if you put your mind to it and it's upto you to find them.
5. Make Frequent Payments
There's no hard and fast rule that you should pay only once a month. If you can make partial payments in the middle of the week, it will reduce your interest. Though it might seem like a very small reduction, it still counts because you're still paying less than what you would be if you paid once a month.
6. Cut Out Some Of Your Extra Spending
Making small lifestyle changes like eating out only once a week rather than thrice can help you in saving money. There are so many unnecessary things we spend money on every month. Identifying those things and cutting them out can help you increase your savings and pay back your loans faster.
Discipline is the key. You may not get to splurge now, but you will one day.