If you’re looking to get personal funding, one way to get your personal credit score in shape is to pay off high interest rates loans. Here’s a few ways you can do that.
Make an extra payment
One of the best ways to lower those balances is making an extra payment every month. If you get a bonus at work or a tax refund, you can make an extra payment on those high interest rate loans yearly too. If you cut back in some of your entertainment costs, you might be able to put an extra payment together that will pay off in the long run.
Switch your payments over to digital. That often allows you to take advantage of the auto payment features which will allow you to put more money down. Using an automated feature lets you to avoid any late fees. If you ask, there is even the possibility you might get a small break in the interest rates.
One of the quickest ways to pay off high interest late loans is refinancing. The rates are still low although they are creeping up. This makes now the perfect time to look into this option. Looking for any available refinancing option lowers the interest rate and the time it will take you to pay off a loan.
Round numbers up
One of the other methods that you can use to pay off high interest rate loans is rounding the numbers up. Even if you can pay an extra $30-$40 dollars a month, it will make a difference. It’s also a good idea to make biweekly payments if you can. Changing up a monthly payment for one that you make twice as often will shave off several months in the end.
Paying off high interest rate loans early is always good for your credit score and rating.