Top 5 Ways to Pay Off Any Loan Faster

Use the below tips to pay off any loan faster:

  1. Find extra income to repay: You can opt for part-time jobs during free time or let out assets which lie idle with you to earn extra money.  In addition to EMI payment, use the money to repay the loan.  This will ensure fast loan closure.
  2. Use lumpsum returns: When you are in debt, have a principle that you will use any lumpsum profit or returns only to repay the loan. Say, for example, you can use your annual bonus/ incentives, proceeds of a bank deposit you receive or dividend you get to repay the loan.  Avoid spending these for other purposes till the debt is paid off.
  3. Refinance: When you find that the terms and interest of existing debt are high you can opt for debt consolidation or refinance so that you can pay off the existing debt fast.  Click to know further.
  4. Reduce expenses: Another step is to list down your expenses.  When in need you can opt for financial counseling.  They will guide you in finding out few unnecessary expenses and suggest you cut those.  By reducing expenses, you can repay the loan fast with the saved amount.  Only thing is most borrowers get offended when these are pointed out.  But borrowers may be unaware that those expenses do not correspond with their income and living condition.  Once the person is debt-free he can choose to spend on those expenses.  For example, frequently eating in costly restaurants, impulsive shopping etc. are undesirable expenses when one is under debt.  These should be reduced.
  5. Rounding off EMIs: Round off and pay some extra amount towards EMI every month.  This will ensure that the loan is paid off fast in a painless way.