Happy Thursday! Paying down debt faster may help you get a head start on your financial goals. This could include applying for new credit, saving money, or just reducing your overall debt. Here are some strategies to ponder over when considering repayment plans. Keep reading for all the deets.

tips for paying off debt faster

TIPS FOR PAYING OFF DEBT

Pay more than the minimum:

Pay off debt and save interest by paying more than the minimum every month. The key is to make extra payments consistently so you can pay off your loan quicker. Before you begin check the terms of your loan to determine whether additional feels or prepayment penalties may apply.

Pay off your most expensive loan first:

Your most expensive loan is the loan with the highest interest rate. By paying it off first you’re reducing the overall amount of interest you pay and decreasing your overall debt. Then continue paying down debts with the next highest interest rates to save on your overall cost.

Keep track of bills and pay them in less time:

Stay on top off your debt by using bill reminders and online bill pay. Simply schedule the amounts you want to pay and when you want to pay them.

Shorten the length of your loan:

Refinancing your debt to a shorter term can help you pay it off faster. It may also save on the total cost of borrowing. You may qualify for a lower rate. Alternatively, you could qualify for a shorter or longer loan term. This depends on your situation.

Consolidate multiple debts:

Loan consolidation may help you repay debt faster. It combines several high-interest rate loans or credit card balances. These are turned into one new loan, ideally with a lower interest rate.

–Chantel Keona