Repaying your debt
When it comes to a major purchase where financing is involved, there are
a few options that can really save you money. In financing, there are two
major elements to consider, time and interest. These combined elements are
what determine the actual cost of your purchase. If you are paying 9% in
interest for a $10,000 loan, the difference between paying the loan in 24
months vs. 48 months is a cost savings close to $1,000. Conversely, if you
are paying that same loan off in 48 months with an 8% APR
you could save over $450 on that loan. But what if you already have a loan
and can't negotiate how much you borrowed or how much interest you are paying?
Good news, you still have time on your side. Save money by paying that loan
such as the Credit Card Payoff, Mortgage Payoff or Auto Loan Early Payoff calculators to quickly and easily simulate new accelerated payment plans for your debt. These are powerful tools that can result in significant cost savings to you. Before you begin exploring your new payment plan, the first element to consider is your contract or loan agreement. You will want to verify if there are penalties to paying your loan off early. If a penalty is present, this does not mean that you should not consider repayment. It is just important to match that penalty to your new payment plan to make sure that there is still a cost savings. Additionally, and most importantly, keep your payments at a range that you can still afford. Make a list of your monthly expenses and verify that your new payment plan won't have you over-extended. Of course, before using any tool to change your financial picture, it would be wise to consult a financial advisor.
Calculate debt repayment