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REDDITAn installment loan may have been your big ticket method to get your home or vehicle. However, after time, you’ve had enough sending in that large schedule payment amount each month. Here are four tips to get out of your installment loan.
Set Up a Sooner Payoff Date
Make a contract with yourself. Instead of continuing with your installment loan payoff date, create your own and pay it off a few months sooner. Due to the interest accumulating on your loan, use an online loan calculator to determine how much you’d need to do so. Then stick to that payment amount each month until your loan is paid off in full.
Apply Unexpected Money to Your Loan
The tax season is upon us, and there is no better way to eliminate bills than to use your tax refund to pay down or off your installment loan. Other unexpected money could be a bonus from work, a large commission that’s finally cashed in, or an inheritance.
Resist the urge of purchasing the new television that you’ve been eyeing or taking that long overdue vacation. Put it all down on your installment loan. Doing so will decrease your principal balance greatly and leave you with a lower payment amount. Don’t fall into that temptation, continue to pay what you’re used to paying to pay your installment loan off sooner and be rid of this debt. This is money you weren’t expecting, so there is no harm in its loss.
Round Your Payments Up
Another way to get out of your installment loan early is just to round up each payment you send in. Round your payments up to the nearest ten or hundred. So instead of paying $35, pay $40 or instead of sending $75, send $100. Be sure to let your lender know to apply it towards the principle balance.
Bring in Extra Income
It may be easier said than done to send in additional money each month to pay off your installment loan. If you don’t have it, consider options to bring in extra income to apply towards your loan. Check out freelance websites such as Fiverr and Odesk. Here you can perform small gigs that don’t take much of your time and put extra money towards eliminating your loan.
These four tips will help you get out of your installment loan much faster than you anticipated. More information about installment loans can be found at InstallmentLoans.org. The more you educate yourself the better you will be positioned to help reduce your installment debt.
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