12 Jul, 2019

How to Payback Your Short Term Loan on Time

If you have acquired a short term loan, then you may already be wondering how you would pay it back on time. Short term payday loans are typically paid back within a certain period of time which you would have agreed upon when applying for it. Also, other types of loans such as that from credit cards or personal loans from banks offer you several years to pay off the loan; however, you will generally get only a few weeks time with payday loans. Are you aware that by paying […]

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If you have acquired a short term loan, then you may already be wondering how you would pay it back on time. Short term payday loans are typically paid back within a certain period of time which you would have agreed upon when applying for it. Also, other types of loans such as that from credit cards or personal loans from banks offer you several years to pay off the loan; however, you will generally get only a few weeks time with payday loans.

Are you aware that by paying off the loan on time, you will be considerably increasing your chances of getting approved for any loans you wish to get in the future?

Here are some useful tips to help you pay off a short term loan on time.

1.     Make Bi-Weekly Payments

If you payback the lender half of your payments every two weeks instead of paying them on a monthly basis, you will benefit in two main ways. Firstly, a lesser amount of interest will accumulate. Secondly, you will be able to shave off quite some time from your loan, and will eventually end up paying it all off well before the last date of payment.

2.     Round Up Your Payments

Another easy way to quickly pay off the loan without too much hassle is to round off the loan. For instance, if you have to pay R274, why not consider rounding it off to R300? This way, not only you will be paying extra, but the additional few Rand will not make a dent in your finances.

3.     Make Extra Money

One of the easiest ways to quickly pay off your loan is by getting your hands on some extra cash that you can use to make the loan payments. If you have some things lying around that you do not use or need, selling them off on eBay or other trading websites is a great way to gather some extra cash. You can use this cash to pay off the loan without affecting your monthly expenditure.

Obviously, you won’t be able to sell things all the time, but this may help with a payment or two.

4.     Refinance Your Loan

You can save a significant amount of interest and pay off your loan in as little as half the time by refinancing your loan. Even payday loans can be refinanced! Get in touch with your payday loan vendor to see what options you can benefit from.

Conclusion

No matter which way you choose to reduce the tenure of your loan and payback all that you owe, the ultimate advantage is that you will be saving money in interest. The money you save on interest can be regarded as savings that you can spend on anything you want – save for retirement, renovate your home or pay off other loans if you have any; not to mention that you’ll be less stressed and you will be eliminating the risk of breaching the due date.

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