1. Make bi-weekly payments
Rather than making monthly payments toward your loan, submit half-payments every two weeks.
Your payments will be applied more often, so less interest can accrue. For example, did you know that credit card debt is calculated and applied daily rather than the balance at the end of the month? You can see how making micro-payments of $10-$20 towards your credit card debt can equate to large sums of money saved in the form of interest each year.
2. Every dollar counts
Did you know that paying an extra $50 per month towards high-interest debt, like credit card debt, can be the difference between a 21-year pay off schedule and a 3-year pay off schedule?! Don’t believe us, just take a look at your credit card statements, they’re legally obligated to provide you with a schedule to pay off if you make only the minim payments. Just a subtle plug, Qoins round-ups save customers $58 per month on average to contribute towards debt, which seems small month-to-month but has huge implications to your total pay off time.
Credit card companies have mastered the art of keeping their customers in debt, but it doesn’t have to be you! Know that any dollar amount above the required minimum payment has drastic effects on your debt-free journey.
3. Make one extra payment each year
If the thought of bi-weekly payments seems daunting then you might fancy the idea of making an additional payment each year, you can accomplish the same goal by committing to making just one extra payment a year. This way, you'll only feel the pinch once a year and you'll still shorten the life of your loan by several months, or even years. Use a work bonus, tax refund, or another windfall to make that once-a-year payment.
4. Boost your income and put all extra money toward the loan
A great way to shorten the life of your loan is to work on earning more money with the intention of making extra payments towards your loan. This could be in the form of hustling for a promotion, job-hopping to a better-paying opportunity, or finding a side hustle. The options are limitless to earn more! Consider selling that stuff you never use in the basement on eBay or pick up a side hustle of VIP Kid, Rover, or Fiverr. Remember, this is only for a period of time so don’t be scared to embrace the hustle until all of your debt is paid off. Even a job that nets you an extra $200 a month can make a big difference in your loan.
Kick debt to the curb by using one or more of these tricks to shorten the length of your loans which in turn saves you significant chunks of additional money in the form of interest. You go this, and you deserve to keep more of your money!