Dealing with debt can be overwhelming, stressful and difficult. There are different types of debt out there, all of which are common today. Whether you have credit card debt, a mortgage, car loans, student loans, home equity lines of credit or any other debt, you will want to know how you can reach manageable payments on those loans.
One option for achieving manageable payments is to make bi-weekly payments on your loan. You should always check with your lender first about their policies so you don’t make payments that won’t help you lower the balance due on your loan. Bi-weekly payments, if allowed, could also help to lower the amount of interest paid on the loan during its lifetime.
You can also try the method of rounding up your payments. If you go this route, do it every month and try not to forget about it. When you round up, you can knock interest off the loan and even lower the principal at the same time.
Another method for achieving manageable payments on your loan is to make extra payments. This is an alternative to making bi-weekly payments as some people might just want to make one or two extra payments per year towards their loan. This is typically done at the regular full amount of a payment. Most who use this method take money they get for their birthday, as a holiday gift, as a work bonus, as a tax return or from a savings account to make the payments.
Of course, one of the most traditional ways to achieve more manageable payments on your loan is to refinance. You should look at your payment history, credit score and loan amount before deciding to refinance.
When it comes time to begin paying back a loan, the interest alone might break the bank. That’s why you should figure out how to get your loan payments as manageable as possible. An experienced Chapter 13 attorney in Long Island can help you in this situation.
Source: One Main Financial, “How to Pay Off a Personal Loan Faster,” Matt Diehl, accessed June 30, 2017