Pay Off Your Loan Early Without Increasing Your Monthly Payments

by Urban Views RVA December 13, 2017

There are simple things that you can do to take charge of your money. Get out of debt sooner with this little trick.

What if I told you that you can pay off your loan in less time without paying a penny more than what you already pay each month? You’d probably think that I was pulling your leg, but trust me, I’m not.

This is no gimmick, it’s simply what I like to call workin’ your money.

To pay off your loan early, you will need to fight the interest compounding on your loan. And the solution is a simple one, simply pay half of your total monthly payment every two weeks. By doing this, you are still paying the same amount each month, but you are fighting compounding by paying more frequently.

You see, lenders are interested in interest. As long as you are making your payments on time, banks don’t mind if you take until Jesus returns to pay off your loan. The longer you take to pay your loan off, the more interest compounds and builds, and that equals more of your hard-earned money gladly taken away by your lender.

If you make bi-weekly payments rather than making your typical monthly payment of the same amount, you will reduce the amount of money that interest can compound on. Subsequently, you will save money and you can pay off your loan earlier than expected.

Crunch the numbers yourself, and plug in your mortgage rate into this bi-weekly mortgage calculator.

But before you go ahead and pay that loan off, call your lender and make sure that there isn’t a pre-penalty fee stipulation that will allow them to charge you for paying your loan off early. If there is one, ask them what the charge will cost you and weigh it out to see what will be the greater benefit. If you think you will forget, you can always set up automatic bi-weekly payments. You will feel good about taking charge of your money, and refusing to let it take charge of you.