Repaying loans quickly is a really good way to save money. The longer you have a loan for, the more you will pay in interest and other charges. This means that if you can repay it early, you will be able to save money. There are some loans which will charge a fee for early repayment and you will need to make sure that you check that you are aware of how much this fee is and that you will be happy to pay it. It could be that the fee is so high that it is not worth paying it and better to just use the repayment scheme that the lender has set up. However, it can often be the case that it is better to repay it early. However, if you do decide to repay the loan early – how can you find the money to do it?
If you have any savings it is always worth calculating whether it is better to use these to repay the debt or keep them where they are. The calculation that you will need to do is to find out how much interest you are getting on the money and how much you are paying out for the loan (in interest and fees). Then you will be able to work out whether it is worth paying off the loan with the savings. It is not always quite this simple though. This is because the savings might be there for a specific reason and spending them may not feel like the right thing to do, You may be saving up for something specific or you may like to have them as a buffer in case you need money in the future and cannot borrow. However, it is important to try to put emotions aside and think about the actual financial benefits of keeping them versus spending them. It is worth remembering that you can use the money that you would otherwise have been paying in interest to start to replenish those savings, once the quick payday loans repaid.
If you can earn more money you will be able to put that extra towards repaying the loan. This can be easier than you might think. If you already work, then you might be able to earn more there by asking for a pay rise or working more hours. However, this is often not very easy to do. Therefore, you will need to think of other ways to earn a bit extra. Fortunately, there are things that you can do which will enable this to happen. As well as trying to get an evening or weekend job, which could be tricky, there are various jobs that you could do from home which could be easier. You could take on some freelance work and there are websites where you can pick up jobs like this which can be easy to use. You could also do other things online such as surveys which are easy to do although the pay is low. These could still help you to get some extra money and may be more relaxing than a more conventional job.
If you reduce how much you spend then you will have more money left to spend on repaying the loan. This can be done by paying less for the items that you already buy or by buying less items. You could also do a combination of these. By asking yourself if you really want an item and whether it is cheaper elsewhere, you should be able to more easily save money when shopping. You should also look at items that you pay by direct debit such as utilities and think about whether you can swap provider and save money.