When you pay off your loan faster (if the loan terms allow early-payoff without penalty, as MoneyLion does), you’ll end up paying less interest over the life of the loan, and you’ll be freed from your payments sooner. All good things. ??
Here are five ways to crush your loan payments (get even more tips in the MoneyLion app):
- Use your tax refund. As tempting as it is to use your refund to buy something new, you’ll never regret using a portion of your tax refund to get out from under your loan debt. Tax season is upon us; here’s your opportunity to get ahead!
- Use gift money. Is a gift-giving occasion coming up? Ask friends and family for a loan payment instead of a traditional gift. Who knows – They might be so proud of your responsible request that they pay the whole thing off for you.??
- Barter your time. Offer to trade your labor for loan payments. For example, help a friend with childcare or clean your parents’ house a few times in exchange for help with your loan. Get the MoneyLion app for free personalized financial advice every day.
- Round up your payments. Rounding up is an effortless and painless way to get ahead. Say your loan payment is $26. Talk to your lender about bumping it to $30. You won’t miss the $4, and you’ll be done with your loan sooner and pay less in total interest.
- Make extra payments. Sell a few things on eBay and use the cash to pay down your loan. Even small amounts like $25 here and $10 there add up. Any contribution that chips away at your outstanding balance is worth it.
Bonus tip: Borrow at a low APR to pay off high-interest debt
MoneyLion Credit Builder Plus is a monthly membership that gives you a guided investment account and anytime access to low APR loans (no need to reapply, good credit not required). Using your loan to pay down high-interest debt could help you save big on interest. Learn more in the MoneyLion app.