How to save money on your loan

June 20, 2019 Off By admin

A loan to be repaid is like a hanging sword over your head. The truth is that most of us have some loan of the other that needs to be repaid. Here are a few things that you should keep in mind when dealing with repayment of these loans.

The drop in home loan rates makes you want to pay additional instalments and try and speed up the repayment. Don’t do that, just make your regular payments as you do each month. That extra money is what you live off and if you don’t have it you will be scrounging around wishing for some extra cash and cursing the loan. If you can afford to make the current payments, do that and don’t repay extra instalments just because you are feeling panicky.

If you have additional money lying around, which is not what you use for your daily expenses, then it is a good idea to make an early, partial repayment, as this will enable you to reduce your monthly instalments. This does not affect the way you live, and still gives you the advantage of lower monthly instalments.

If you do not have that lump sum in hand what you can do is consolidate your savings each month. Even a couple of hundred a month can add up in a year. As you can afford to put this money away it will not pinch and at the end of the year you will have a good amount to reduce the principle of the loan by.

An online mortgage or home loans online can offer savings in terms of fees due to lower overhead costs, so it’s worth to try your luck on search engines or comparison sites.