When you are thinking about borrowing a loan from a provider like Zebra Loans etc. to pay a bill or take care of other expenses, it is important that you consider the impact that this loan will have on your finances. The actual impact of borrowing a loan today is very important for those of you who are not trying to stretch your budget beyond that that you can afford. Also, if you do borrow a loan to pay an expense that you really need, you should devise a plan that will allow you to pay it back comfortably and quickly. Here are 3 great tips that can assist you in paying the loan back by or before a specific date.
Tip #1- Establish a Specific Payback Date
When you want to pay a loan that you have borrowed quickly, you should set a date of the month and year that you want to complete the payments. For instance, if you want to pay back your loan in full within 6 months versus a year, you should document the date that you have selected. This date will help you to stay on track and will assist you in ensuring you are successful in your efforts.
Tip #2 – Speed up the Timing of the Payments
Once the date has been set, you should do everything that you can to pay the money back by that particular time frame. If you decide to pay the loan back quicker than the date that was originally established, you can speed up the payments. For instance, to pay the principal of the loan in a shorter time frame, you may want to pay the debt bi-weekly instead of once a month. By expediting the amounts that you pay on your principal, you will also reduce the amount of the interest that is tacked on to the principal.
Tip #3 – Cut Back on Discretionary Spending
Another way to pay off your loan early is to find other financial sources to pay the loan back. For those of you who are on a tight budget, this may mean cutting back on your discretionary spending. For instance, for some of you, this may mean staying at home with friends on movie night to watch your favorite video instead of going to the moving spending extra money. You may want to continue cutting back until the loan has been paid back completely to the creditor.
Tip #4 – Make an Extra Payment
If the loan amount that you owe spreads over several years, you can be very creative about getting the amount down quicker. One excellent strategy for reducing the number of months that you have agreed upon is to make an extra payment on the loan annually. For instance, if you are paying off a year loan, you can cut down the time by 6 months if you pay one extra payment each year.