Tips To Pay Off Your Car Loan Faster
Readily available financing solutions have made things a lot easier for people to get their hands on the vehicle they desire.
Here are some tips to pay off your car loan faster
We live in a time where a car is the second biggest purchase you will make after a home. Plus when you take the financing option, you essentially pledge a sizeable part of your income for a medium to long period of time. Knowing how to pay off the car loan faster therefore makes a lot of sense. Not just in pure financial terms but also in terms of the nagging thought at the back of the mind, as to how it is holding you back from pursuing other dreams.
So, if you are in the market for a new car, it would be worth your time to read through till the end, and learn how you could pay off your loan responsibilities quicker than usual.
- Begin with a chat with your financier & working out a payment schedule that has you repaying part of the loan on a bi-weekly basis. You may not realize it, but this arrangement turns out to be quicker than the usual monthly payments, given how the months vary in the number of weeks in them.
- In most instances, you are likely to get a lump sum payment from one or more sources each year. This could be a bank deposit maturing, dividend receipts or even a bonus from your workplace in appreciation for all the hard work. The trick is to battle the urge to spend this windfall elsewhere & use it to pay off the car loan instead.
- Unless you’re really busy at the workplace (in which case, you ought to be asking the bosses for a pay hike), there’s a lot of scope to pick up a few paid assignments on the side. The money gained from such an endeavour could very well go towards paying off the loan on your car.
- You could even try the ‘rounding-off’ approach, wherein, one increases the monthly loan payment outgo to the nearest 5000/10000 mark. The increase may be tiny to look at, and won’t pinch much, but over time, it’ll pay off spectacularly.