Personal loans are best for when you need financing for something of a personal nature.
This could be to fund a holiday, pay for the wedding of your dreams or to buy a lavish item of sorts.
Regardless on what you decide to buy with your personal loan amount, repaying it back as soon as possible should be a priority. It is one way to ensure that you are saving money overall and not paying more than you should be on anything.
With a few professional tips you can decrease the total amount of interest you are repaying but also save time repaying your loan. This is especially useful if you are planning on applying for another loan to fund your next venture or desired item.
Maintaining an excellent credit score is how you can ensure that you qualify for the loan amount that you would like to apply for. And lenders will have no problem approving loans for credit-worthy applicants.
All you need to do is use one or more of the tips below to make sure you repay your personal loan in record time.
You can divide your repayment amount by two and repay these amounts every two weeks. The more repayments you are making, the more you are saving. Why? Because less interest is accumulating. On a yearly basis, by doing so, you will also make one additional payment per annum. If you are able to stick to this method throughout the duration of your repayment, you could save over several months’ worth of interest.
Consider rounding up your payments
This is a small trick that could potentially save you a lot in the long run. You will be paying extra without even noticing a difference to your cash flow. For example, if your personal loan repayment is R1 221.20 – consider paying R1 300.00. The extra funds might go unnoticed to you but will save money with each payment you round to the next highest figure.
Extra repayments are the best way for you to save when repaying your loan. Use any additional funds you receive to repay your loan to ensure that you are lowering the interest that is charged to the principle amount per annum.