Repaying a loan as quickly as possible is a top financial priority for many of us. Whether you have a home loan or a personal loan, there are some simple steps you can take to reduce the life of your loan.
Having weekly or fortnightly repayments, instead of monthly, can save you interest and take months or even years off your loan. Check that your loan allows you to make more frequent repayments, and whether there is a penalty for doing so.
If you are paying off a home loan, a linked offset account is a great option. Having your income or savings in an offset account will reduce the amount of interest you pay over the life of on your home loan.
If your circumstances allow it, you should and put more into your loan whenever possible.
Every extra dollar will help to speed up the repayment process, but before you start making bigger or more frequent contributions, it’s important to check that your loan allows additional payments and early repayment, and whether there are any penalties for doing so.
You can also give yourself a better chance of repaying the debt quicker by making sure you have the right home loan or personal loan for your needs. If you need help making sense of your loan options, talk to one of our loan consultants on 13 25 77.