How to pay off loans quickly

Instead of paying once a month when the bill is due, I break it into two payments and pay twice a month. This way, I can start chipping away at that balance.
Tags: loan
Geplaatst op 10-07-2008 14:29 | 3 Commentaar | 0 Keer als favoriet toegevoegd | 0 keren gemarkeerd als ontoepasselijk
 

Commentaar

#1     This is a good way to save some amount paid as interest... I guess, this is the reason why, many of the loan providers don't accept weekly or bi-weekly payments...
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~Soundar
Geplaatst op 03-12-2008 10:15
#2     If your lender doesn't allow you to make weekly/fortnightly payments you could always put the money in a high interest deposit account until you can make the repayment. It won't be quite the same but at least you get back some of the interest.
Geplaatst op 01-02-2009 15:03
#3     hi, most of the loans are structured in such a way lion's share of first 30% of installments go towards interest only. So, logically, if you are at fag end of your EMI tenure, it is advisable to not to pre-pay EMIs.
This makes sense as you have anyway paid interest on these loans and current installments are predominantly towards principal. Further, rate of interest on a loan is always much higher than that of a fixed deposit/ savings bank account.
Geplaatst op 17-10-2009 20:51

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