Tips for Paying Off Your Loan Early
Why Pay Off your Loan Early?
Whether you needed to take take a loan for college fees, pay hospital bills, or start a business, the feeling of paying off a loan early brings a huge sense of satisfaction and is quite liberating. One of the major benefits of paying off any loan early, of course, is that you will end up saving money on interest. Interest is the extra money you have to pay Mwito for giving you the loan. Additionally paying off your loan early gives you a chance to take another bigger loan to boost your development projects.
Here are a few of the top tips for those who would like to save money on interest by paying off their Mwito loans early and faithfully:
1. Don’t Miss Any Payments
Missing payments on a loan should be avoided at all costs as it will cause you to fall behind on your scheduled payments, it will also subject you to accrued interest, and will result in you eventually paying more money in interest and being listed in the credit reference Bureau. Resist the temptation of skipping any payment.
2.Make One Big Payment Each Year
If you can afford to make one payment a year that is well above the regular amount, it can help you pay off your loan quicker and save you money on interest.Remember the earlier you make your big payment the sooner you’ll pay off your loan. The early bird gets the savings, or however it goes.
3.Pay More Often, If Possible
If you are scheduled to make payments on your loan on a monthly basis, try making payments of half the monthly amount once every two weeks. For example, if you are paying Kshs 4000 a month, try splitting that payment into kshs 2000 payments every two weeks. With a payment every two weeks, you’ll end up making 26 half-payments per year. That adds up to 13 full payments a year, rather than 12.This helps you pay off your loan in a shorter amount of time as well as saving you money on interest.
At Mwito, we boldly reaffirm our commitment to ensure progress of our members by educating them continuously on proper use of credit. For loan advise and to learn more on our affordable products call 0728505800 or contact us HERE