Loan repayment schedules are calculated to make payments as affordable as possible. However, the lower your payments are, the longer it will take to pay off. This means you’ll end up paying more in interest over the life of the loan, and, for many people, this is far from ideal. At Putnam 1st Mercantile Bank in Cookeville, TN, their experienced loan services team wants to help. Here are a few tips to help you pay down your loans faster so that you can save money in the long run.

How to Pay Off Your Loans Quickly

1. Make Larger Payments

Making larger payments is the easiest way to pay down your loan fast. Just rounding your payment up an additional $10 a month can help you pay it off more quickly over time. 

2. Use Your Tax Refund

Rather than using your tax refund to buy the latest and greatest piece of technology, consider using it to make an extra payment on your loan. If you do this every year, the larger annual payment can help speed up the repayment process, especially when combined with rounding up monthly payments.

3. Pay Every Two Weeks

Rather than making a single payment each month, consider making them every two weeks. Over time, this reduces the amount of interest the loan earns since the principal decreases every two weeks rather than every four.

4. Look for Paperless Discounts

Many lenders and loan services providers offer discounts on your interest rates if you opt for paperless billing. While it might not knock thousands of dollars off of the total price of your loan, it can allow more of your monthly payment to go toward the principal. The more money you pay on the principal rather than the interest, the faster the total balance goes down.

5. Sell Your Unwanted Stuff

If you’re cleaning out your closet or going through a pile of boxes, consider selling the items rather than throwing them away. Host a garage sale with friends or look for online marketplaces to sell your items online. Over time, these sales can add up, and you can use that money to pay down your loan.

6. Refinance

If you’ve been making regular payments, your credit score has likely improved from when you applied for the loan. Consider refinancing with your loan services provider and try to get a better rate on your existing loan. This will save you both in interest and total payments each month.

Let the loan services team at Putnam 1st Mercantile Bank help you start paying down your loans more quickly. Their dedicated banking specialists will work with you to find the best rates possible, whether you need a business loan or are exploring a mortgage for a new home. Learn more about their services online or call (931) 528-6372 today.