Paying down debt faster has many benefits, including helping to reach life goals sooner than expected. So how can you do this? Follow these steps:
Refinance.
Refinancing can be a great way to pay off your loans faster, but it’s only suitable for some. To understand why refinancing is a smart option, take a look at some of the common types of refinance loans:
- You can refinance your student loan debt to get a lower interest rate or increase your monthly payments. By doing so, you’ll be able to reduce the time and money spent on paying back your student loans.
- You can even get same day cash loans if you urgently want to pay off any risky debt.
- Suppose you’re interested in consolidating your federal student loans into one payment (which reduces paperwork). In that case, refinancing might reduce overall interest payments and speed up repayment time.
Make biweekly payments.
- Make biweekly payments for your same-day loans. Instead of paying your credit card bill once a month, make half the amount on one day and the other half on another. This way, you’ll pay more interest over time but repay your debt faster.
- Pay more than the minimum monthly payment. If you owe money to more than one lender and want to avoid taking out a new loan or credit card, try putting extra cash toward your current debts until they are paid off completely. You’ll be surprised how quickly this will help pay off your loans.
Save part of your tax refund.
If you get a tax refund, this is an opportunity to pay down debt faster. If you’re wondering how much of a difference it’ll make and whether or not it’s worth it, here are some examples:
- $5,000 bonus: You can knock out roughly 10% more of your loan balance with the average student loan payment amount by putting that money toward paying off loans.
- Side hustle earnings: Even if your side hustle only brings in about $200 per month, consider putting all or some of those earnings toward bills first instead of spending them on fun stuff like clothes and dinners out. If you save up over time this way (and if enough people do this), you’ll see lower interest rates across the board.
Get a second job.
The easiest way to make extra money is by getting a second job. This may be a good option if your work schedule is flexible and you don’t have any children or other responsibilities. It’s important to remember that having multiple jobs can put quite a bit of stress on your body and mind. Remember that you must file taxes on the income if you plan on making more than $600 per month. This can be complicated if you’re filing jointly with your spouse because of the marriage penalty tax laws in the United States (which means couples who make over $250k per year could end up paying more taxes together than they would separately).
It might seem strange to suggest taking up a hobby as part of paying off debt faster, but hobbies do bring several benefits: They can provide an outlet for stress reduction and anger management; they give you an opportunity for creativity which can lead you into new career paths; they help you meet new people who may become friends or potential business partners down the road, and lastly it gives you something constructive to do with our time rather than watching TV all day long.
Some organisations can provide it if you’re struggling because of a lack of money and want same-day cash loans.
In the end, paying off debt faster is a great way to feel more in control of your finances. It can also help you save for retirement or other goals, which can make all the difference in your life down the line.
