14 June 2018

How to embrace early personal loan payments

So you’ve applied, received a personal loan, and used it to finance something like a new car or dream wedding. When it comes to paying it back, there’s no silver bullet for doing it faster.

It’s important to check whether there are any early repayment fees chargeable on your personal loan before starting to make additional repayments. There are no early repayment fees on an ING personal loan.

However, there are things you can do to find a bit of extra money and pay down your loan more quickly. It may not seem like much, but with a few of these techniques working together you could pay off your loan much sooner.

Round up your repayment amounts

It seems like it wouldn’t make much of a difference, but by rounding your repayment amount up to the nearest $100 you will get there faster. Let’s say your repayment amount is $172. If you find room in your budget, pay off $200 instead. Even though it’s only $28 at the time, if you do this over five repayments that’s an extra $140 towards your loan. This is a relatively painless way to speed up your payback process.

Use surprise money

It doesn’t matter if it’s $20 in a birthday card or $500 from your tax return – we all love getting surprise money. Why not put it to work with your personal loan?

While you’re paying off your loan, get in the habit of putting all money that’s outside of your usual earnings (think found money, gifts, bonuses from work etc.) towards the loan repayment. Even a $5 note you find under the couch counts.

Shift leftover budget

You might consider creating multiple savings accounts with a set budget for each of your regular expenses, like groceries and bills. This way, if you’ve ended up saving money on one of your expenses for the week, you’ll be able to see how much is left over and contribute that extra amount to a personal loan repayment.

Check out a more detailed guide on how to set multiple accounts here.

Sell pre-loved items

Did you pick up playing bass guitar but then put it down to focus on another passion? Did you get a new camera as a present and still have the old one lying around? These are things that people could pay good money for.

Platforms like Gumtree and eBay are easy ways to connect with people and sell your pre-loved items to get some extra money.

Put your skills to work

This one’s for all the undercover craftsmen out there. With platforms like Airtasker you can assemble furniture, garden, clean and do all sorts of odd jobs to get an extra source of money for your loan.

Or maybe if you’ve got a car and some spare time, try out being an Uber driver. You’ll get extra pocket money and have some great conversations along the way.

Paying off early is a great option – you’ll save on the amount of interest you pay and with ING, there are no early repayment fees on personal loans. Find out more about ING personal loans and how they can help you reach your goals.

Find out all you need to know about ING’s personal loans.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. Living Super, a sub-plan of OneSuper ABN 43 905 581 638 is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at ing.com.au when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms https://www.ing.com.au/pdf/Social_Media_User_Terms.pdf.

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