How do I pay my loan off quicker?
Well, there are multiple ways, but it depends on your circumstance. It is easier to pay off a variable loan quicker if you have the extra money to put into the loan.
1. Negotiate a lower interest rate (We can apply on your behalf for an interest rate discount if yours is too high- it’s quick and easy to do, and can save you a substantial amount of money)
2. Make more than the minimum repayment. So if your minimum repayment is $3000 a month and you have an extra $500 a month spare. Put it into the loan. This can save you a substantial amount of interest and reduce the term..
3. Make more frequent payments. Instead of paying $3000 a month, you can pay $1500 a fortnight/ $750 a week, you will end up paying off more per year, as you get in an extra 1 or 2 payments in per year.
4. Pay principle & interest instead of interest only! So you’re actually paying down the loan amount!
5. Use lump sums (perhaps in an offset account) like your tax return, any work bonuses etc…
6. Use an 100% offset account.
Please give us a call to see which of these options are best for you!
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.