Getting a loan gives you the ability to make a purchase that you otherwise wouldn’t be able to. However, the monthly payments that come with it can be difficult to manage if you’re not careful. Luckily, there are steps you can take to quickly pay off a loan.
4 Tips for Managing Loans
1. Consider Bi-Weekly Payments
Take care of your loan payments every two weeks as opposed to on a monthly basis. Not only does this method lower the amount of interest accrued because contributions are made more frequently, but it also shortens the timeline to eliminate the loan. However, contact your lender before doing this, as you could be charged for altering the payment plan without approval.
2. Sell Unused Items
If you want some extra funds to put toward loan repayment, clean out your closets, bookshelves, and other cluttered areas in your home. Then, sell anything you don’t need, and put the profits toward your payments plan.
3. Try Refinancing
Meet with your lender to discuss your options for refinancing. Often, this method provides more favorable interest rates and lower monthly costs. This is particularly true with mortgages and auto loans.
4. Consider Paperless Options
Depending on your lender, discounts may be available when you sign up for online payments and paperless statements. This is because the lender doesn’t have to worry about sending out paper documents and charging late fees.
The professionals at Beacon Finance understand how overwhelming loan payments, and they’re here to help make things easier. They have two convenient locations in La Follette and Tazewell, TN, and they have been providing manageable loan options for over 20 years. Give them a call today at (423) 566-6864 to schedule an appointment, and visit them online to learn more about their loan services.