Ways to repay your debt early
Paying your debt can be very challenging if you do not seek advice on how to do it. There are various ways which you can use for achieve this goal. Before you implement either one of these methods, you should check specifically what terms and conditions your lender has set for early repayment.
Analysis and Arrangements
Paying off debt early is a highly beneficial solution. However, this may not necessarily be the case. You have to consider your current financial situation and future financial plans to determine whether this will be the right solution for you.
This method includes making extra payments whenever you have cash left. It is the easiest and most flexible of all. At the same time, it is the hardest to use. You will require great financial discipline in order to make extra payments without following a fixed schedule.
One Extra Payment
This is another very simple approach which you can follow. It includes making an extra payment every year. You will be making 13 annual payments instead of 12. Typically, the people who adopt this method use their end-year bonus from work for making the additional payment.
Every fortnight Payments
This method comprises paying a loan instalment every two weeks rather than every month which is the norm for most types of loans. With this method, you will make one comprehensive extra payment per year.