Often overlooked, smart repayment strategies can help you pay off your loan faster. Here are some simple ideas that can make a difference:
- Set up your payments to include a little more than the minimum required payment so that you don’t notice the difference
- Switch your repayments to weekly or fortnightly. This will have the effect of one extra repayment each year.
- Keep the loan term to the minimum that you can comfortably afford
- Use smart loan features such as salary crediting, offset accounts, to help minimise interest costs
- Put extra cash such as tax refunds, birthday presents, bonuses etc. towards the loan rather than spending it! Once the loan is repaid, it’ll be like having these rewards every month!
- If you have a split loan, reduce the term on one of the loans, especially if the funds are used for purposes such as a car, furniture, etc.
Use my extra repayment calculator to see how you can benefit!