Tips on How To Pay Back Your Small Loans Faster

Posted by : Premraj | Posted on : Friday, May 24, 2019

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There are countless reasons why an individual accumulates debts over time. It may come from unexpected events like losing a job, expensive medical treatments from severe illness or accidents, unanticipated house or car repair, or simply because of funding a lifestyle beyond the means resorting to the use of credit card to bridge the gap.

Regardless of the reason, debt can shake your budgeting and get you off track from your monthly responsibilities. But the silver lining here is, there is always a way out no matter what kind of debt you’re in.

Applying for small loans can be as easy as booking an airplane ticket with a self-service kiosk that operates 24/7 just like CashnGo. But unlike loans, paying it can take up some time. Here are 6 tips that help you pay back your small loans faster.

1. Find another source of income.

Make use of the extra hours you can spare in a day to generate money. There are plenty of ways to find a part-time job. You can get paid from cleaning houses, walking dogs, seasonal jobs, or even online jobs.

There are online jobs that accept part-time employees, such as a Virtual Assistant, eBay, or Amazon lister. Seasonal jobs aren’t just available during holidays. Some stores or retailers are always on the lookout for seasonal workers in all seasons. For instance, during summer, outdoorsy jobs such as lifeguarding might open; during winter, you can get a paying job to shovel snow in your neighborhood.

Whatever you earn on the side, even if it’s just small amounts, will add up and can be used towards paying your loan. The goal is to save any amount of money you get to pay your loans right away.

2. Sell stuff you no longer need/use.

Selling valuable stuff just lying around your house you don’t necessarily need can be another source of income. Other stuff can generate extra funds to pay your debt. You can go old school garage sale to make a profit or go online to sell them. There are plenty of avenues online to help you get a broader range of buyers like eBay, Amazon, or Facebook Marketplace.

3. Use extra money as extra payment.

If you are employed, you can earn extra cash on top of your regular paycheck from an annual raise, bonus, or tax refund. These sources of extra income you get per annum can help you clear your debt or cover a huge percentage of it. You can postpone your plan of treating yourself to a vacation or buying yourself the latest gaming console in exchange for an extra payment out of your debt.

4. Cut unnecessary expenses and habits.

The money spent on a pack of cigarettes or a bottle of beer can go a long way if saved and used towards the payment of your debts. The same goes to your frequent visits to coffee shops, shoe stores, or nail salon.

Live in a strict budget if you’re currently working on being debt-free. By cutting these habits, or finding a little less expensive replacement, you can cut a considerable chunk from your paycheck to pay your loan or credit card.

Frugal living can be heartbreaking if you are not used to that type of lifestyle. However, it is only temporary until you are out of your debt or closer to that. Read about great finance statistics around the globe to get a glimpse on how budgeting, financial literacy, and savings impact on paying out your debt. Evaluate your spending spree before getting back your discretionary spending lifestyle

5. Don’t give in to temptation.

Step away from anything that’s tempting you to open your wallet and pulling your credit card out. This means restaurants, shopping malls, or online stores. Better yet, leave your credit card at home for times when the force is too strong to resist.

Consider taking drastic measures to avoid these places that can get you into another debt. Take a different route if you have to, minimize time on the internet, or instead of dining out, stock your fridge with groceries in case cravings kick in. Remember, paying old debts is as difficult as avoiding new ones.

6. Make more than the minimum payment.

It doesn’t matter what type of debt you are in; may it be a student loan, credit card debt, or a personal loan. Rounding your minimum payment off is a smart trick to shorten your loan terms. From your part-time job or strict-budget lifestyle, you can have the capability to bump up your monthly payment a little. The added amount will eventually add up, which should save you from the interests and knock off a month or two of your loan terms. But before doing so, confirm first if prepayment is not subject to any penalties.

Conclusion

Getting out of debt can be full of heartache and determination. It takes a lot of planning and commitment to the action plan. Following these steps can guarantee a lesser interest and shorter overall loan term. Although a debt-free future doesn’t happen in a snap, there is always a way out of it.