EFFECTIVE WAYS TO PAY OFF YOUR CAR LOAN FAST
Have you ever considered about how to make a full payment for your recently obtained car loan in a short period of time? This is because car prices fall with each passing month, while interest rates rise with each passing month. In this article, we share our customers’ best practices. We trust that it will help you to repay your loan quickly and without additional financial burden.
- Make a payment in every two weeks
Talk to your lender and agree to split your monthly payment in two, not once a month, and pay it every two weeks.
By doing that:
- You pay less interest because you pay more often.
- You will be able to pay more than you pay every month within a year, because there are 52 weeks in a year, and you can repay the loan 26 times a year. (But if you pay every month, you only pay 12 times.)
- This will allow you to shorten your loan repayment period by several months.
- Pay your bill in full
Paying your bill in full on time is an easy way to shorten your payment period without requiring additional financial resources. For example, the monthly payment was set at MNT 829,120, but the monthly payment was rounded up to MNT 900,000, with an additional monthly payment of MNT 70,880. That means you pay one more month of payment in 12 months. By paying a few extra tugrugs a month, you can shorten your loan repayment period and save on interest payments.
- Generate additional income
You can use the money earned from selling clothes, books, and old furniture through online shopping platforms such as Facebook and unegui.mn to directly repay your loan. You may think that the income from selling old things will be only 20-30 thousand MNT and it will not worth much, but it is not.
Also, if you earn 200-300 thousand MNT per month by working part-time beside your full time job, plan to use your salary to make a repayment on the loan. That means
you have already paid 2-3 million MNT of your loan in a year.
- Use your one-time extra income to repay your loan
You may not have a regular chance to obtain an additional income. Therefore, add your one-time income, such as VAT refunds and year-end bonuses, to your loan payments. If you have multiple loans, you should start with the highest interest rate loan.
- The advantage of repaying loan early
By paying off your credit card and other loans and payments as early as possible, you will save on interest payments. Of course, there are many benefits to paying off debt early, such as; increase your savings, buy things you need at home, and more. But the most important thing is that you get rid of constant stress and burdens due to loans.