How to quickly repay a loan?

The loan allowed you to purchase the necessary thing and pay for urgent personal needs, but now it hangs with a heavy load? It is especially psychologically difficult for those to whom debt to the bank makes it difficult to feel free. Credit can negatively affect the emotional state, lead to prolonged stress or even depression.

If you want to get out of the debt hole and repay loans as soon as possible, carefully plan your budget, learn how to save and direct all available funds only to repay the loan. It is easy enough to refuse excess daily expenses if you imagine how much more profitable it is to put money into repaying current debt obligations, and to buy trinkets using your own funds that will be available after the loan is repaid.

To learn how to refuse unnecessary expenses, imagine that you borrowed these 100-200 rubles or several thousand from a bank, for example, to buy a sofa, and you have to pay the same percentage for using them as you have on an existing loan. Such a calculation will wean from the purchase of unnecessary little things that cost so high (often 2-3 times the price) overpayment.

How to speed up loan repayment?

To repay a loan earlier than the term specified in the contract, listen to the following tips.

• Making payments before the date indicated in the repayment schedule - the less borrowed funds are used, the less interest is charged. As a result, the total overpayment will be less, which will allow you to get rid of the last payment and get even with credit earlier;
• Making payments of a larger size than stipulated by the schedule - the larger the amounts paid, the greater part of the main debt is paid off, which will save you from paying extra interest accrued on the main debt.

Even the extra 10 thousand rubles paid in excess of the mandatory payment will help to save about 1-2 thousand rubles per year, and for 5-10 years an amount similar to the additional payment. So it will turn out and collect in the kitchen. Making a payment first of all for 1 day will bring savings of 0.05-0.1% of the loan amount.

How to quickly repay a few loans?

In a situation where several loans are on hand and you need to quickly pay off the debt, you can use one of the following methods:

1. First of all, to repay the smallest loan - the option is suitable for those who want to bring the result of their actions closer, for example, instead of three loans, after paying off the smallest loan balance, only two will remain, then one;
2. Paying off the loan with the highest monthly payments - this approach will remove a significant burden from the budget, but notice the result not immediately, since usually there are large monthly payments on the loan that is issued for a long term;
3. Pay off the most expensive loan at the highest rate. The best solution is to repay the loan in the first place, which is more expensive than the others, and using it for a long time is less profitable.

You can resort to another method of expediting settlements with multiple lenders - debt refinancing or consolidation.

Instead of 2-3 loans in different banks, apply for one at the bank offering the most favorable conditions and a low interest rate. This will reduce the monthly payment. You can apply for such a loan even on the bank’s website without leaving your home.

How can a bank prevent a quick repayment of a loan?

It is unprofitable for a creditor bank that borrowers repay debts ahead of schedule and pay less interest for their use. In order to prevent early repayment of a loan, banks may take the following measures:

1. Use of a moratorium on early repayment - prohibit repaying the loan completely the first few months of its use or completely prohibit prepayment, but this is prohibited by applicable Russian law.
2. Penalties in the form of commissions and fees for early partial or full repayment of obligations are also prohibited methods, which can easily be challenged in court.
3. Limit the amount of the minimum payment made to pay off the debt by setting it at, for example, several tens of thousands of rubles, which will complicate the actions of the borrower who wants to slightly increase the monthly payment in order to save on interest.
4. Write off the loan repayment money from the loan account only in the amount and only on the date indicated in the repayment schedule. No matter how hard the client tries to make a payment early, the bank will accept it no earlier than a certain deadline.

Watch the video: How to Pay Down Debt: Strategies for Debt Payoff (December 2024).