You already know the obvious:
The faster you pay off loans, the less money you’ll pay your creditors and the more you’ll keep for yourself. To pay your loans off faster, you’ll need a little extra money and some simple tools — but it can be done. Fortunately, we have some budget hacks for faster loan repayment that will get results.
Change Your Financial Balance.
There are two ways to get more space in your budget for debt repayment: decrease expenses or create more income. Do both.
On the expense side, bundle insurances and renegotiate. If you’ve been with your insurer for a while, call them and say you’re unhappy with your rate. Let them know you’re shopping around for a better deal. You may be surprised how many new “discounts” they can find. Rethink your cable bill. Do you really need all those top-tier channels? You can stream a lot of entertainment free or at low cost over the internet. Also, stop outsourcing household tasks like cleaning and lawn work. Nobody enjoys doing laundry and pulling weeds, but unless you have a more profitable way to spend your non-work hours, start washing and weeding.
Generate some extra income to multiply the cash available for debt reduction. Sell stuff you don’t need. Get on Ebay and start selling. There are now dozens of other online selling services: ThredUp.com, shopstick.com, yerdle.com, varagesale.com and of course, the original online classified site, craigslist.com. Pick up money on the side. Everyone has some skill that others will pay for. Check out TaskRabbit.com and UpWork.com to see the easy things — like being a virtual assistant or shopping for a holiday party — people are willing to pay you to do and put those dollars toward faster loan repayment.
Get the Whole Family Involved.
Everyone’s needs and wants have created the debt, and you’ll be doing your family members a favor by showing them how to take charge and defeat debt. Have a family meeting to solicit ideas, and enlist them to cut expenses by being conscious of electricity and water usage, pitching in to perform outsourced household tasks and even earning extra money. Set a goal, and put aside some of the extra dollars you save or make to pay for an incentive like a family vacation.
Use A Loan Repayment Calculator.
This is your roadmap to quicker debt reduction: You need to see where you’re going and exactly what you need to do to get there. Use a loan calculator to find how much extra you need to apply to your debts each month for faster loan payoff. Biweekly loan payments can not only get you out of debt faster, but also save you money on interest over the life of the loan. Experiment with the calculator to see how different payments will help you achieve your goal of quicker debt reduction.
AutoPayPlus™ can help you pay down debt faster. Withdrawals from your account every other week fit conveniently with paychecks and your monthly budget, while an extra half-payment twice a year paid toward principal reduces interest over the life of the loan. Please visit our website to learn more.