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Man finding out how to simplify the loan repayment process

Simplifying the Loan Repayment Process

Paying your loans back can seem like a complicated mess. With so many different things to think about during the process, it can all get confusing and overwhelming at times. 

You can pay off your loan faster if you make smaller payments more often if you make an extra payment at some point during the year if you refinance, sign up for auto-pay, and stick to a standard payment plan. Additionally, you can repay more on your loan if you find different ways to make more money and if you round up your monthly payment.

If you are interested in learning more about these topics, check out this quick and easy guide to making your loan repayment plan as simple as possible.

Make small payments more often

Instead of making one payment each month, consider making two half payments. With a bi-weekly payment plan, you'll pay more often, which means you'll pay less interest over time.

Over time, this can save you money because making 26 half-payments each year equals a full extra payment. Also, making payments every two weeks instead of every four will trick you into making an extra payment throughout the year. 

Turn your 30-year mortgage into 26 years and pay off your debt sooner simply by using this bi-weekly payment plan. 

Make an extra payment whenever you can

Make it your goal to contribute any extra money you have left over after the month ends towards paying off your loans. In the beginning, shoot for making at least one extra payment throughout the year at whatever time you can manage it. 

If you get a Christmas bonus at your job, consider using it for a loan instead of a fancy new toy. If you get a birthday gift of money, pay off loans with high-interest rates. This will decrease the amount of interest you pay by shortening the life span of your loan. 

Nerd Wallet suggests trying the 50/30/20 method, which breaks down any extra found money into these categories: 50% towards debt, 30% towards savings, and 20% towards fun. This is a reliable method of saving money and paying off debt sooner. 

Consider refinancing 

According to Horizon Federal Credit Union experts, refinancing is one of the best ways to shorten the length of your loan. 

If you have experienced any recent change—if your interest rates have lowered, you recently increased your credit score, or you started a new job that makes more money, refinancing is a great idea to save some money.

Refinancing reworks your loan with whatever new information you have. This means that interest rates and the loan length can change for your benefit. 

Refinancing is the most applicable to someone trying to pay off a loan quicker by either shortening the life of the loan with a lower interest rate or taking advantage of lower monthly payments. 

Try enrolling in auto pay 

Getting behind on loan payments is a slippery slope. If you find yourself in a position where you have missed one or more payments, make it your goal to make a change. First, stop missing payments immediately. Then, figure out what is causing you to miss payments and do what you need to do to stop. 

Then, allocate your money appropriately, so you have enough every month to go to the right places. Then, set up an auto-pay system. Autopay can be an absolute lifesaver if you have a forgetful mind. 

Autopay is an automated payment system that simultaneously makes scheduled payments for you each month. This will help you ensure you do not miss a payment in the future without having to stress a bit about it. Setting up auto-pay can be as simple as making a phone call or logging into your account online. 

Simple Fast Loans offers handy auto-pay services, so you never have to miss a beat regarding your payment plan. Call or email or head online to learn more about getting started. 

Stick to a standard payment plan

If you have trouble keeping up with payments, sticking to a standard payment plan is your best bet. This will be the most uncomplicated and manageable payment system set up through your bank or loan company. Simple Fast Loans takes pride in helping customers come up with a payment plan that benefits them to the highest extent personally. Getting a personalized payment plan may be as simple as reaching out. 

Lady discovering how to stick to a standard payment plan

Increase your income in small ways

Picking up a side hustle is a great option for people with a few extra hours on their hands throughout the week—extra time equals more time for a second job or side hustle.

Consider starting an online store or selling items you no longer use. Turn your skills into cash by freelancing online, making YouTube videos, or blog writing. Tutor young kids, or if you are the artistic type, try out your hand at self-publishing an original work. 

Try to create multiple income streams and use them to your benefit. Having multiple ways of getting money diversifies your income and makes your future and financial system more stable, giving you more options. 

You can also increase your income by living below your means. "Below your means" means that you are not spending your hard-earned cash in frivolous ways on items you do not genuinely need.

Live cheaply by shopping for sale items and discounted options, or maybe even try out couponing. In today's age, there are apps and websites designed to make couponing and saving money on food and fuel easy and applicable to your life. 

Remember that any monetary gains made outside your normal work income should be put towards paying off your loans in a regularly used system such as the 50/30/20.

It may be easy to lose sight of your goal if you bring extra cash into play. Keep your financial goals in the forefront of your mind, so you do not forget what you want to accomplish. 

Round up your monthly payments 

Taking on some extra money for each monthly payment to round up your payment to the nearest whole number is a great way to shorten the length of your loan and pay off your debt more quickly. Although a few extra dollars each month may not seem like a lot, it can save you a lot of money in the long run. 

Start by rounding your monthly payments up to the nearest $50. Then, slowly increase it to a number you feel comfortable with over time. If you feel extra ambitious, consider rounding up even further to the nearest $100 or $1,000. 

If you have a trusted budgeting system, consider incorporating these larger payments into it and seeing how the rest of your finances add up when the month is over. Eventually, you should be able to see how these few extra dollars each month paid off. 

Consider loan repayment options 

Simple Fast Loans makes paying your loans easier by having easy-to-use online features and easy access to your account. Simple Fast Loans strives to meet you where you are and develop a loan and a payment plan for the loan that suits your needs the best. 

Simple Fast Loans strives to make getting a loan an effortless experience for everyone involved and pay off your loan as simple as possible, with multiple repayment plans and options to choose from to suit your specific requirements. 

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