Top Tips to Pay Off Any Loan Faster

Who will not like to repay loan fast and become a free bird!!  Following tips can be used to pay off any loan faster:

Extra income:

Try to generate extra income in some form.  Extra income can be generated by using free time properly by doing part-time jobs.  Those who have hobbies/skills can try a little more to sell their products/skills.  This can be done through social networking apps.    Extra income can also be in the form of renting out/using idle assets at home.  This extra income can be utilized for repaying the loan.  For example, an unused gift card can be adjusted against EMI.

Changing lifestyle:

In order to curtail expenses, few thrift measures can be followed ex. using a cheaper mode of transport etc.  Frequent extravagant dinners, outings etc can be reduced to a minimum.  This discipline will cut down those extra expenses and the savings can be utilized towards loan payment.

Make bi-weekly payments:

One can try making bi-weekly payments to pay off loans in a fast manner.  A little extra amount like rounding off EMI can be done.  This will help is loan repayment without realizing any burden.

In case such extra payments would result in a preclosure penalty, no worries, just keep saving those extra amounts.  Once the saving reaches a sizeable amount this can be used for paying the next installment itself.

Information regarding terms and conditions of preclosure can be found in the website of lenders like

Proper use of Lumpsum amount:

Any lumpsum amounts received like dividend, incentive, bonus etc should be used towards repayment of the loan.  If this rule is unscrupulously followed without deviation, then the loan can be paid off easily.  Also, note that such amounts should be adjusted against the principal.  This tactic will help in reducing the interest burden.