Debt can be a monkey on your back and steal your hard-earned cash with any due date. But it doesn’t have to be that way. You can tighten your budget to put more money into cash advances and pay off debt faster than you thought possible. Read on to find out more.
Why should you pay off debt faster?
Paying off your cash advance loans and lines of credit comes with many benefits.
Relieve your budget
First of all, by canceling your debt early, the debt will no longer tie up your monthly income. You have more money to save or to have some fun.
reduction in interest
Some direct online lenders apply additional payments to the principal amount. If this is the case with your account, you can reduce the interest you pay over the life of your cash advance. That’s because the interest is calculated from your principal – if you lower this number, you will accrue less interest.
release credit
When it comes to personal loans, these revolving accounts are available as needed as long as you keep your balance low. Once you bring your balance back to zero, your full credit limit is available to help you in an emergency.
Check this one thing before proceeding
With so many extra payment benefits, you might be ready to double your budget. But first, you should always read your cash advance agreement carefully.
MoneyKey’s installment loan experts encourage their borrowers to make as many additional payments as possible, but not all online direct lenders have the same policy. They may charge you for additional payments over and above your scheduled bills.
While there are no such penalties for paying out a Cash advance via MoneyKey early on, you may need to consider this fee if you have another lender.
For this reason, you need to know whether your payments go against the principal. Depending on how much you save in interest, the fee may be worth it. Or not.
How to pay off cash advances faster
A goal this big can feel overwhelming, so it’s best to keep your strategy simple. Check out these basic tips to help you double your payments.
1. Cut out the unnecessary stuff from your budget
Cutting the budget is the best way to put more money into debt. Track your past spending habits and look for unnecessary waste that is tying up your money. Not sure where to start? Here are a few ideas:
- Stop using expensive ATMs or ATMs when withdrawing money
- Cancel your gym membership and work out from home for free
- Switch banks to reduce bank fees
- Start following a meal plan Avoiding takeout and saving money at the supermarket
- Pause streaming services until you pay off your debt
- Switch to another carrier with better plans
- Cancel subscription boxes
2. Make more money
If you’re already running a tight ship, you might not have many bad spending habits to root out. You may not find any more in your budget until you get another source of income.
Think about your skills and interests. Could you use one of your Hobbys in a part-time job? If not, consider taking a part-time job on the weekends. You can use your entire salary for special payments.
bottom line
There are many reasons to pay off your cash advance early, so make sure your lender allows it!
Photo credit: mohd ridzuan bin roslan via FreePik
