We’ve put together a few great tips to help you with some ways to pay off your car loan faster.
1. BI-WEEKLY PAYMENTS
Paying bi-weekly will actually allow you to pay less interest over the life of the loan. And since there are 52 weeks in a year, you will end up making 26 payments—paying more than you would with monthly payments.
2. EXTRA PAYMENT
Make an extra payment to your loan whenever you can to help pay down the balance. Decide whether you’d like to take money from a bonus or tax return to put towards this. You could also divide your regular payment by 12 and add this amount to the payment each month—this should end up with one extra payment per year.
3. EXTRA MONEY
If you have extra money after expenses each week, consider putting this towards your loan. You could decide to get a part-time job or sell unused items in your home to have extra money to put towards your loan.
Round-up your payment to the nearest dollar to put a little extra towards the payment each time. Every little bit will help towards an early payoff.
5. WHAT’S NEXT?
When you have paid off your loan and want to know what to do next, click here to read our blog with a checklist of next steps.