Try Harder To Pay Back Loans More Quickly

Taking out a some finance is sometimes the only solution when you suddenly are caught out with an unexpected expense. I remember years ago my dear old car broke down, she was serviced regularly and all up to date with MOT, yet she still just stopped one day on the motorway, leaving me stranded until the recovery vehicle arrived.

The recovery vehicle took my car to the nearest mechanical workshop where it was determined that the petrol pump had seized which is not what I expected and they quoted me a bill which was money that I just didn’t have.

Without my car I was catching the bus to work, trying to come up with a solution on how to have the repairs done. Someone suggested I apply for a loan. In those days the banks were happy to offer financial assistance; it wasn’t like today where the high street lenders don’t give out money as easily. I took out a loan; there was a minimum amount, so I took a lump sum, which I thought was to my benefit.

The loan paid the repairs on my vehicle and enabled me to consolidate all my accounts. Leaving me with just the loan to pay back, I thought I was in control and on top of the world.

My Mistake With My Loan

Back then I didn’t understand how loans worked, I thought I was to pay back the minimum amount each month and that was it. It was only later after it took me years of discipline to get the loan paid back that I learned all the tricks to getting it paid off quicker.

The first thing I learned which I am sure you’ve heard of is by paying even a small amount extra each month, you can reduce the amount of time it takes to pay back loans. This is a blessing because you are able to get your loans paid back quickly and not have to worry about the repayment amount each month.

Another trick I learned along the way is that if you are paid weekly, pay back a small amount each week, ensuring it amounts to the repayment amount by the end of the month; interestingly this can reduce the amount of time it takes to pay back the loan. However, you probably will end up being the loans company’s worst nightmare because the interest needs to be recalculated with each payment.

Is it Worth Paying Your Loans Back Sooner?

So many people question whether it’s worthwhile paying their loans back quickly and whether there is actually any benefit to this. I have to say there are great benefits in paying any loans back as quickly as possible, especially if you also are paying back credit cards, store cards and any other accounts.

It is so easy to get caught up in paying back money that before you know it you don’t have any left to enjoy yourself. With rent, utilities, groceries and accounts, you can be left with a few pennies for the rest of the month. Why struggle? By paying off any of your outstanding debts quickly you can start saving for a rainy day, save up the money and take your family on vacation or save up for that new car or house you have been dreaming of.tick this box

Remember that by paying back loans in a timely manner you keep your credit score at a good level. These days’ banks and any stores take your credit score into account before offering you loans or credit, your credit score is your life blood in getting money as and when you need it.

There will be times when you have no choice but to apply for loans, just like I had to when my car broke down. There are times when you have no control over problems and before you realise it you need extra cash to help you get through. Before you apply for any loans ensure you can repay the loan in a timely manner, maybe you can afford to add a little extra each month to pay the amount back that bit quicker and always do a set budget to ensure you never miss a payment. Loans can be a blessing in a time of need, but don’t take them for granted, ensure you have the money in your budget to pay them back or your credit score will be tarnished, making it difficult to get credit in the future.

Sarah Fox believes in careful financial planning and has learned of ways to repay loans quickly and easily. To learn how, follow her on Google Plus for more information.

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