iCrowd Newswire
08 Aug 2022, 16:02 GMT+10
If you're able to pay back an emergency loan early, you may be wondering if this option is right for you. One thing that may concern you is prepayment penalties, or fees the lender charges for paying your loan off early. While some lenders charge prepayment penalties, there are also many others that don't. If you've decided to go this route, here are some methods you can use to pay off your emergency loan early:
Instead of paying off your debt every month, consider paying off your debt every two weeks if you can. This may amount to the equivalent of one extra payment each year. Paying bi-weekly will also boost your savings because the amount of interest will be reduced. There likely won't be significant changes to your monthly expenses when paying this frequently, and the life of your loan may be shortened by months or even years.
Refinancing your emergency loan can help you pay it off early in two ways. You can potentially shorten your loan term or get a lower interest rate. But keep in mind that a shorter loan term will mean that you'll have to pay a higher monthly payment.
Another option you can consider is making one extra monthly payment a year. If your monthly payment is $1,000, pay an extra $1,000 sometime during the year. You could use the extra money you receive from a bonus or tax refund to make the extra payment.
If you can't come up with the additional payment all at once, you can spread it out over the year. With this method, you would divide your monthly payment by 12 and add that amount to each monthly payment. As an example, $1000 divided by 12 would be $83.33. Add those two numbers together, and the amount you would pay each month is $1,083.33.
If you currently can't afford to pay a high additional payment, a more affordable way to pay extra is rounding up your monthly payment to the nearest $50. If the monthly payment of your emergency loan is $270, you can round it up to $300. With this method, you'll still be taking a few months off the life of the loan and saving on interest without significantly affecting your budget.
Consider looking into different ways you can earn some extra money to help pay off your loan. Search for a part-time or seasonal job that you can apply for. If you have items that might be worth something, you can try selling them on Amazon or eBay.
Work on saving more money that you can put toward paying off your loan. Some simple ways you can cut down on your monthly costs include dining at restaurants less and reducing your electricity use. Consider canceling any subscriptions that you aren't using as much and switching to a cheaper phone plan. Track your spending to discover any expenses that you can reduce or cut, and create a budget that you can stick to. Using one or more of these methods can help you pay off your emergency loan early with ease.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
See Campaign: https://www.iquanti.com
Name: Michael BertiniEmail: [email protected]Job Title: Consultant
Tags:Menafn, PR-Wirein, CE, Go Media, Financial Content, ReleaseLive, Google News, Reportedtimes, IPS, iCN Internal Distribution, Extended Distribution, EnglishGet a daily dose of Houston Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Houston Mirror.
More InformationWASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
DUBAI, U.A.E.: A cargo ship flagged under Liberia, known as the Eternity C, sank in the Red Sea following an attack executed by Yemen's...
WASHINGTON, D.C.: The Trump administration has started sending some weapons to Ukraine again, just a week after the Pentagon told officials...
ECAULT BEACH, France: On clear days, the white cliffs of the United Kingdom, are visible from northern France, where men, women, and...
ATLANTA, Georgia: The United States is facing its worst measles outbreak in more than three decades, with 1,288 confirmed cases so...
In the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
LONDON, U.K.: At least 13 people are believed to have taken their own lives as a result of the U.K.'s Post Office scandal, in which...