Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How to Finish Paying for Your Car Loan Earlier

Finance
0
AlvinPBarnes Posted

Being stuck on a 72-month auto loan can be quite tiring. It also prevents you from making other big financial decisions because a significant portion of your income is tied toward repayments. Follow these steps if you want to finish with your auto loan earlier.

Check the Fine Print

If you have yet to sign your contract and are thinking of paying off your loan sooner if your finances permit, check to ensure that you are allowed to do so without incurring penalties. But if you’ve already signed, the best you can do is calculate for various scenarios. Compare the costs of paying off the loan early with fees against the amount you’ll spend if you stuck with the original payment schedule.

Choose a Biweekly Payment Scheme

It’s easy to think paying half every two weeks is the same as making full monthly payments. But when you do the math, you’ll find that you’re paying an extra month in a single year just by following a biweekly schedule. Since there are 52 weeks in a year, you could make half payments 26 times in the biweekly option, equivalent to 13 months!

Find Extra Sources of Income

Getting out of your auto loan can be done more quickly if you have more disposable income. Consider taking on side gigs during the weekends and saving your bonuses to add toward your loan payment. Every year, consider putting in a significant amount to reduce your outstanding balance and decrease the interest over the life of the loan.

Do Not Take on More Debt

When you’re making progress or almost over with one debt, making another huge purchase can be quite tempting. Resist the urge and reserve that money to pay off your auto loan first. If possible, pay for everything else in cash.

Refinance When It Makes Sense

Refinancing a car loan could hurt one’s credit score, but this usually happens when the purpose of the loan is to borrow against the car’s equity or to lengthen the term for lower monthly payments. When refinancing to shorten your loan length, on the other hand, the ultimate goal is to pay off your debt sooner, which eventually could even improve your credit and save you money in the long run. You can find more tips on paying off your auto loan faster at RateGenius.

0
Dillan130

I would like to draw your attention to a very interesting local gambling project called first deposit bonus. For me, this is a great solution for everyone who loves casinos and similar gambling in one way or another and at the same time wants to support local initiatives. I can definitely recommend it!

0
Mark325

In a world where financial stability is more important than ever, Împrumuturi Online stands out as a beacon of reliability and trustworthiness. Their commitment to customer satisfaction is evident in every interaction, and I’m grateful to have them as a partner in my financial journey. Whether I’m seeking guidance or assistance, I know I can always rely on Imprumut-Online to have my back.

What is your question?

*Sadly, we had to bring back ads too. Hopefully more targeted.