4 Ways to Quickly Pay Off Your Personal Installment Loan
Life can be unpredictable. One moment you’re managing your finances quite well, then the next thing you know, you suddenly need to pay car repair fees, parking violation tickets, and medical expenses. At times like these, you may want to consider applying for a personal installment loan.
A personal installment loan is a loan that you can repay with regularly scheduled payments. This loan arrangement can help you get the money you need in a pinch without the pressure of needing to produce the whole amount at once. Through regular installments, you can slowly pay it back and have more room to breathe.
If you apply for the loan and get it, here are some tips that can help you pay it off comfortably.
1. Ask About Discounts
Discounts can help you cut down the amount you have to pay, even by just a little. So, ask your lender if they have available discounts and if you’re eligible for any of them.
Some would offer first-time client discounts, repeat customer discounts, or Annual Percentage Rate (APR) discounts. If you are eligible for any discount or promotions, talk to your lender about availing of it.
2. Round Up Payments
Paying a larger amount each month is a sure-fire way to pay off your loan quickly. If you’re not able to pay large amounts just yet, you can start with rounding up your payments.
Most of the time, the installment amount you need to pay has extra cents, like $123.45. When rounding up, you have to choose what is most comfortable in your situation at the moment. If the payment is $123.45, you can pay $150, $130, or even $125. The extra payment you make will add up and may eventually lead to fewer installments near the end of your loan term.
3. Make Extra Payments
If you get a windfall and you have a little more cash to spare, you may want to use it to make an extra payment on your loan. This will either reduce the amount you need to pay or the length of the installment.
Let’s say that you still need to pay $123.45 per installment, and you only need to pay it for 12 more months. Divide $123.45 by 12 and add the quotient to $123.45. This means that to make an extra payment, you’ll need to pay about $133.74 on your next installments until you’ve paid off your entire loan.
4. Pay More Frequently
If you’re on the last stretch of paying your loan and your finances are doing great, you should consider making more frequent payments so you’ll be debt-free more quickly.
Suppose that you make monthly payments. Instead of paying once a month, try paying once every two weeks. You may be paying twice the amount, but your books will be clear twice as fast.
Conclusion
A personal installment loan is a great option when you need cash for emergencies. Asking about discounts, rounding up payments, making extra payments, and paying more frequently are some ways that you can clear your books quickly.
Always remember to speak with your lender when making payments outside of your agreed terms. This ensures that your payments are correctly recorded, and the right adjustments to the terms are made.
First Finance Company Birmingham is a respected lending company that provides personal installment loans in Birmingham, AL. Contact us today to learn more about how we can help you!