How to pay your loans quickerPosted on: October 22, 2017, by : Ari Kaka
People have bridging loans, cash loans and all other types of loans. Most people really want to live debt-free but circumstances make this impossible. We all know that we can not have in mind everything that will happen and part of the expenses are exactly this – unexpected. This is actually the reason why bridging loans in Singapore have been created. This type of loans is aimed to help people to meet ends of the month financially and to pay back money when they get their salary. This is the ultimate loan story but unfortunately, most loans have long-term and you have to pay them for at least several months. Of course, if you have more than one, for example, bridging and personal loan, then the situation becomes more complicated. We have found several tactics how to pay your loans quicker, and we are ready to share this precious knowledge with you.
Pay your loans weekly not monthly
Try to submit your payments every two weeks instead of every month. This benefits your interest rate and you will pay more money without knowing it. In every year there are 52 weeks in comparison with only 12 months. The result will be shorter terms and quicker debt freedom. We promise you that you will enjoy this freedom. Have in mind that some money lenders in Singapore might have prohibited clause against more payments so you will have to talk to them first.
Pay rounded amount instead of the exact amount.
If you round your payments you will pay a little extra but in the end, you can win one or two payments less. If you can afford it, try to round your payments with more than $50 or even $100.
Sold things you don’t need.
As it may sound desperate to some people but in fact, we have a lot of stuff we don’t use. Why don’t we sell them to people who will use them regularly? Every time you sell some item just add the amount to your loan’s payment. Impulse saving is bringing as much joy as impulse spending money. If you have one or two impulsive savings every year, they could form one payment more.
This is a really good method if you want to decrease your interest rate. If you have taken your loan at a certain rate and later you find a better offer with a lower rate, just use it to refinance the first loan. This way you will gain decreasing rate and sometimes this difference can be double or triple so don’t lose this opportunity. Have in mind that there are some taxes and you should consider them, too. If the amount of your loan is not very big and taxes will be bigger than the decreased rate then it is not worth it.
We won’t discuss the benefits of not using paper in the global aspect. Sending a letter to your address cost money to your lender so if you sign for a paperless service, you may have some additional benefits. Some money lenders in Singapore (check this list => https://www.loansingapore.sg/moneylender/) manage to decrease the interest rate with 0.25% because of an online bill using. Don’t miss the opportunity to do it.
Why should you pay your loan quicker?
There are plenty advantages but the biggest one is debt free. As soon as you accomplished it, you can start saving money. If you have managed to pay your payments regularly, you will manage to save some money, too. Imagine what you can do with extra cash. Having a loan it is not scary but it requires some discipline and responsibility. If you have extra recommendations what is the best way to pay your loan quicker, don’t hesitate and share them with us.