(revised 11/22/2024)
When you have an emergency expense or you need a little help to make ends meet for a short time, you may have applied for a loan online. When you take out a loan, you agree to pay certain additional costs that incur before paying it off in full.
But you could be eligible to save interest money if you pay loans faster; this may depend on your loan, so check your agreement. This blog will give you great ideas to pay off your loans quickly.
How can I make a loan payment?
Taking out a loan, such as a payday or an installment loan, means borrowing a certain amount of money that you will have to pay back to the lender by a predetermined date. If you want to make payments on your loan, you may have these options:
- An automatic transfer from your bank account to the lender
- A check or money order mailed to the lender if it arrives before the due date
- Making the payment in-store, if there is a store location near you
- Payments made through the lender’s online portal
Some lenders offer online loans, with some offering the option to make a payment online with your debit card or your bank account information. Lenders generally accept payments as soon as you take out the loan, so you should make payments when you have the funds needed.
4 ways to pay off your online loan faster
With the tips below, you may be able to pay your loan off quicker than initially planned.
1. Only borrow what you need
No matter the situation, you should only apply for the amount you need. To get an idea of how much you will pay in total if you make on-time payments, calculate the true cost of your debt here.
2. Make extra principal payments for installment loan products
Paying back more than the minimum amount each payment decreases the additional costs created by interest. You can pay the loan back faster and reduce your long-term costs by making larger payments. When making your payment, be sure to choose the payment option that will pay down your principal loan amount, and try to avoid the payment option that only will decrease your next monthly payment.
3. Find ways to supplement your income
Generating higher income through side jobs or temporary gigs can help you make extra payments. Offer to do odd jobs in your neighborhood for some extra cash. You can pick up extra shifts at work or work longer hours when they’re available.
4. Limiting expenses
Cutting back on your expenses can also help. Consider canceling a streaming service or only eating at home until you’ve paid off your loan. Spend less on snacks, groceries, or other treats like coffee. Save money and pay your loan off quickly.
At ACE, we strive to offer the best products and services for the communities we serve; if you need a helping hand, visit our online loans page to learn how to apply for a loan at ACE today!
This blog is not intended to provide any tax, legal, financial planning, insurance, accounting, investment, or any other kind of professional advice or services. To make sure that any information or suggestions in this blog fit your particular circumstances, you should consult with an appropriate tax or legal professional before taking action based on any suggestions or information that we provide.
