Have you always been looking for ways to pay off your car loan faster?
Buying a car can be very costly, but getting approved for car loans can be so easy especially when you have established a good credit history.
However, paying them monthly can become quite tedious and burdensome especially that it takes years for you to pay it fully. Sometimes, you’d just wish that you can pay for the auto that you have loaned fast.
Fortunately, that wish can become a reality, for there can be ways to pay car loans fast. Do you want to be debt free from your vehicle? If so, here are the ways that you may pay your auto at a lesser span of time:
Tips for Paying Car Loans Fast
1. Refinance for a Lower Interest Rate
It could be that the bank was able to finance your auto because of your good credit score. If you have paid for your car loan regularly for about a year now, maybe your credit score could’ve become higher. With this, it is possible to apply for a refinancing to lower your interest rates so your total loan can become lower and you can pay it earlier.
2. Pay Your Car Loans every Two Weeks
If you pay your auto loan monthly, you’ll have 12 payments in one year. But the annual calendar has 52 weeks. If you divide your monthly payment on a bi-weekly basis, you will have a total 13 payments in a year, which pays off your car financing payment at a faster time. By being able to fund your car loans bi-weekly, your balance easily decreases, which means that the amount of the interest that you pay is lessened, too.
3. Pay with Your Extra Paychecks
This is can be more feasible when you get weekly or biweekly paychecks. If your payment is on a weekly basis, you typically get four paychecks in one month. However, there are months with five weeks. Instead of spending it, you can use the fifth paycheck you got to finance in advance for car loans.
Snowballing your debts is one of the tools that you can apply to pay off cars and other loans fast. Pick your debt with the lowest amount, one with earlier payment terms which you think you can pay at a lesser span of time. Commit to paying it as soon as possible. Once completely paid, the amount that you used to disburse for that debt can be added to the payment for car loans. In this way, you can get higher payments and you will be able to pay for your vehicle early.
Your Payment Options
This set of advice are just your options, and you may or may not need to follow it. But if you are serious about getting rid of your financial debts and pay car loans earlier, then you may consider bringing in all of them. It may quite be hard to sacrifice some of your extra money to pay for your credit, but you will also be the one to enjoy the fruits once you get paid off.