As you work your way in paying your debt and becoming free from it once and for all, probably you have tried virtually any other way to save money, increase your income and pay it faster. If you want to make loan repayment less stressful and challenging for your Bonsai Finance, then the points below can help you out.
Tip number 1. Make biweekly payments — it is a smart move of you to pay the loan every 2 weeks rather than making the payments every month. By doing so, it will help you accomplish 3 things including less interests as your payments are applied more often, you’ll pay extra payment as 1 year consists of 52 weeks and doing this for the duration of your loan shave off months.
On the other hand, before you get to do this, you have to talk this one with your lender. It’s due to the reason that you may unknowingly pay off your balance earlier than you’ve been expecting or be penalized.
Tip number 2. Round up your payments — as a matter of fact, rounding up your payments help you to make payments become effortless and effective. This is almost the same when you are paying your loans bi-weekly, you don’t necessarily need to have excess funds to cut off few months of your term. To give you an example, if you have an auto payment to make that was roughly around 289. 84 dollars, but opted to round the payment to 300 dollars which is basically an excess of 10.16 dollars per month or a total of 121.92 a year. Automatically, this is lessened to your payments upon the last term of your loan.
If you wanted to, it is possible to add 50 to 100 dollars to the payments you are making every month. For the said period, rest assure for it to add a significant amount that then lets you shorten your loan and save on interest. Read more about loan at https://en.wikipedia.org/wiki/Loan
Tip number 3. Make one additional payment — you are still able to attain the same result by making an extra payment per year in case that you do not have the cash flow to be able to commit in making a biweekly payment. You can repay your loans faster by using cash from your work bonus or even tax refund. You can also divide your monthly payments to 12 and then, add the amount to all your future payments.
We can’t deny the fact that repaying your Bonsai Finance loan puts a huge strain on your budget but you can lighten up this burden by making yourself aware of the tips discussed.