How to pay off your personal loan quicker

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When taking out a personal loan, you will do so ensuring that the repayment amounts you have committed to are affordable. We understand that your personal circumstances may change from time to time, and we would be sympathetic towards any customer that needed to revise their payment amount should they lose their job or face another scenario that would see them short on money for a period.

Likewise, personal financial circumstances can also change for the better, which may see a customer decide they wish to pay off more of their loan at once or make a larger payment as a one-off. This would help to pay off a personal loan quicker, while there may be other possibilities for doing so. At [name], our aim is to ensure that all our customers benefit from our simply personal service, and an important part of that is helping you to understand all your options for paying off your personal loan quicker.

What are the opportunities available to you?

Opting for Higher Repayment Amounts

By choosing to repay your [name] personal loan over a shorter period, you will pay a higher amount each week or fortnight, yet save money over the course of the loan owing to the lower level of interest you will pay. Individuals will often choose a repayment amount that leaves them other disposable income, which is understandable. However, we would encourage you to look at your budgeting and try to choose as high a repayment amount as is manageable for you.

Don’t ditch your lifestyle completely and wipe out your disposable income, but do consider the options you will make by taking this route. You can call us to speak to one of our personal loan experts or use our personal loan calculator if you’re unsure.

“At NOW FINANCE, our aim is to ensure that all our customers benefit from our simply personal service, and an important part of that is helping you to understand all your options for paying off your personal loan quicker.”

Make a One off Payment

If you chose a longer loan term and lower repayment amount to err on the side of caution, you may find you have money left over at the end of the month. In this instance, you may wish to use this sum to make an additional payment towards your loan balance. Should you believe this is likely to be a scenario that will present itself during your loan term, you should check the terms and conditions regarding additional payments, as you may need to pay a fee.

Sometimes making one off payments will not actually save you any money, as the full amount of interest may still be applied and where fees are involved you may even end up spending more, though you will achieve paying off your loan quicker.

Consolidating Your Loan

If you have more than one personal loan, or you have a range of other debts that you are currently paying off, then a debt consolidation loan may be a suitable solution for you. While you will still be in debt, a consolidation loan will enable you to pay off an outstanding personal loan and may also mean you reduce your interest and repayment amounts.

Should you take the option of consolidation as a means of paying off an existing personal loan, you should consider the higher regular repayment or one off payment options when planning your debt consolidation loan period and regular repayment amount.

“If you have more than one personal loan, or you have a range of other debts that you are currently paying off, then a debt consolidation loan may be a suitable solution for you.”

Only Borrow What You Need

At [name], we’ll speak to you about the reason for your loan to ensure you only borrow what you need for that specific purpose. While borrowing more than you need ‘just in case’ might seem a good idea, ultimately it means you accrue more debt and therefore pay more interest than you really need to.

Paying Off Your Personal Loan Quicker

There are many factors to consider when planning to take out a personal loan. We recommend you look at all the options carefully to ensure you don’t spend more than you need to on interest, or take longer to pay off your loan than you perhaps need to.

You will always have options available for paying off your personal loan quicker, and can contact us at any time during your loan period, or before taking out a [name] personal loan, to inquire about the options available to you.

Disclaimer:  This article contains general comments and recommendations only. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs. If this article relates to the acquisition, or possible acquisition, of a particular credit product you should obtain and consider the relevant disclosure documents before applying for the product.

Things you should know

Applications for finance are subject to NOW Finance’s lending and approval criteria. Terms and conditions may apply.  No establishment, account keeping or early repayment fees will apply. Charges such as default or enforcement costs may apply if you do not comply with the terms of your loan. Settlement times may vary depending on individual circumstances. Loan repayment terms range between 18 months to 7 years.  For unsecured loans you can borrow between $5,000 to $50,000 with interest rates ranging from 5.95% p.a. (5.95% p.a. comparison rate*) to 17.95% p.a. (17.95% p.a. comparison rate*).  For secured loans you can borrow between $15,000 to $100,000 with interest rates ranging from 4.45%p.a. (4.45% comparison rate*) to 15.45% p.a. (15.45% p.a. comparison rate*).

*About Comparison Rates

The Comparison Rate is designed to help you understand the overall cost of the personal loan. It combines the amount of the loan, loan term, repayment frequency, interest rate, fees and charges into a single rate to show the total true cost of the loan. The comparison rates for the NOW Finance loans are based on a loan of $30,000 over 5 years. WARNING: The comparison rates given are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Due to the fact NOW Finance does not charge any establishment, account keeping or early repayment fees, the true cost of the loan or Comparison Rate will always equal the interest rate quoted.

^CONFIRMED RATE

our confirmed guaranteed personalised rate may change if you provide NOW Finance with incorrect personal information or security details.  In some circumstances, NOW Finance may require further information from you in order to provide you with your guaranteed personalised rate.

NOW FINANCE is a trademark of Now Finance Group Pty Ltd ACN 158 703 612 Australian Credit Licence number 425142, as agent for NF Finco 2 Pty Ltd ACN 164 213 030