You know this already: The faster you pay off a mortgage, the less cash you’ll spend with your creditors and the more you get to keep. If you’d like to pay your home loan off faster, you’ll need a little extra money plus some smart tips and tricks — but it can be done. Here are a few financial hacks for faster loan repayment.
Tip the financial scale in your favor. You’ve got two approaches to get more elbow room in your budget for an early loan payoff: Cut your bills or earn extra money. For best results, do both.
On the expenditure side, try to bundle insurances and renegotiate. If you’ve been with the same insurer for quite a while, call them and say you’re unhappy with your rate. You can let them know you’re checking out your options and looking for a better offer. You may be shocked at the number of new “discounts” they suddenly uncover. Rethink your cable cost. Do you really need all those top-tier channels? Now, you can stream a lot of shows totally free or at a low price over the internet. Also, quit outsourcing household jobs like window washing and lawn work. Nobody enjoys cleaning and pulling weeds. But unless there’s a more worthwhile way to spend your non-work hours, start washing and weeding.
Generate some additional income to put toward debt reduction. Start selling things you don’t use. Get on Ebay and start listing. There are now dozens of other on-line selling websites: ThredUp.com, shopstick.com, yerdle.com, varagesale.com and of course, the original Internet-based classified-ads website, craigslist.com. Find ways to generate revenue on the side. Everybody has some talent that other folks are willing to pay for. Look at TaskRabbit.com and UpWork.com to see the simple things — like becoming a personal online assistant or a holiday shopper — you can do to earn extra money and put those extra dollars toward faster loan payoff.
Involve the whole family. Everyone’s needs and wants helped create the problem, and you’ll be doing your family members a favor by showing them how to take control of debt once and for all. Have a family meeting to solicit ideas, and enlist everyone to cut expenditures by becoming aware of energy and water use, pitching in to perform outsourced household chores, and even earning a few extra dollars on the side. Set a target and put aside some of the money you helped save or make to pay for an incentive, such as a night out at the movies.
Make use of a biweekly loan payoff calculator. This could be your roadmap to accelerated loan reduction. You’ve got to visualize your goal and see precisely what you need to do in order to get there. Utilize a biweekly loan calculator [link] to see how much extra cash you have to apply toward your debts for an accelerated payoff. Biweekly loan payments not only get you out of debt faster, but also save you money on interest over the life of the loan. Experiment with the calculator to see how adding a little extra each month can help accelerate your debt reduction goals.
AutoPayPlus can help you pay off your loans faster. Withdrawals out of your account every other week fit conveniently with paychecks and your monthly budget, while an additional half-payment twice a year toward principal decreases the interest over the loan term. Go to this website to find out how to get started with your rapid loan repayment plan.