Quick Ways to Pay off Personal Loans

It is a fact that solving money problems with money will not solve money problems long-term. Consequently, personal loans are not tax deductible, so this type of loan is not considered to be good debt. Nevertheless, it is best to get out of personal loan debt as fast as possible. Call the loan company to find out the amount of money needed to pay off the entire loan; then enquire about any pre-payment penalties for paying off the loan early.

Some companies will provide a reduced interest rate if the monthly loan amount is automatically deducted from a checking or savings account. Therefore, create a separate checking or savings account for these monthly payments. This will automatically reduce the amount of debt owed.

Half & Half: Pay half of the loan payment every two weeks, but before the due date. For example, if the loan is due on the 15th of the month then pay half of the amount due on the 29th of the previous month and the remainder before the due date. Of course, make sure your loan company will accept this type of payment before going down this path. With your payment send a letter explaining the payment structure. Paying down debt this way will provide one extra payment per month and reduce the interest on the loan because the money is being applied more often. learn more & add comments