If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Whether you owe money on a personal loan, an auto loan, or a different type of loan, the sooner you pay it off, the less you'll spend on interest. And those savings can really add up over time.
Plus, there's something to be said for shedding your debt and not having another monthly payment hanging over your head. Most lenders don't charge a prepayment penalty for paying off a loan early (though some might -- be sure to check with your lender). If you're looking for how to pay off a loan before the end of the loan term, even by the end of this year, here are some tips for speeding up your repayment plan.
One way to get some extra cash for an extra payment is to cut a few small costs from your budget. Of course, you could conceivably save hundreds of dollars each month if you were to pack up your apartment and downsize to a smaller space in a less expensive neighborhood. But in doing so, you'd probably make yourself miserable, so it may not be worth going to that extreme. Instead, take a look at smaller changes you can make.
If you want to find out how to pay off a loan faster, try to eke out some everyday savings and use them to pay off the outstanding loan balance. Here are just a few ways:
These are just a handful of examples, and each one on its own may not make a huge dent. But the point is that cutting back on small things could help you make more than the minimum payment -- and knock out your debt without having to uproot your life.
If you're eager to learn how to pay off a loan faster and get rid of the balance this year, boosting your income could be just the ticket. And if you're not getting a raise at work, you might need to take matters into your own hands and secure a side hustle. You have different options, and the side gig you choose should hinge on your skillset, the sort of work you like doing, and whether you prefer a job you can do remotely or not.
Some income opportunities to look at include:
Keep in mind that you can pick up more than one side gig. Just don't overextend yourself to the point where you risk falling behind at your main job.
Make sure you have enough money in an emergency fund to cover any unexpected expenses before you start trying to pay off your personal loan faster. While it's nice to get out of debt, you'll still need to pay the bills if a crisis occurs.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
You may come into extra money during the year, whether it's in the form of a tax refund, a performance bonus at work, or a gift from a relative. If you take that extra cash and apply it to your outstanding loan as a lump sum payment, you'll get that much closer to paying off your personal loan.
When it comes to owing money, not all debt is created equal. Owing money on an installment loan like a personal loan, for example, isn't as bad as carrying revolving debt (like credit card debt). Not only is a personal loan likely to charge a lower interest rate, but a personal loan won't count toward your credit utilization ratio -- a number that can hurt your credit score if it gets too high. Similarly, a car loan is a reasonable thing to have, and if you keep up with your monthly auto loan payments, it can actually help build a positive credit history (which will boost your credit).
At the same time, it certainly helps to pay off whatever remaining balance you have on your loan as quickly as possible. That way, you'll save on interest and have less financial stress to deal with. For this reason, working toward debt repayment can be a great financial goal.
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Citi Personal Loan disclaimer:
**Rates as of 05-31-2024. Your APR may be as low as 11.49% or as high as 20.49% for the term of your loan. The lowest rate quoted assumes excellent credit and a loan term of 24 or 36 months. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.