If you are in need of money, a personal loan is a great option! It has a lower interest rate in comparison to credit cards and a longer repayment tenure as well, making the monthly payments easier on your wallet. While personal loans are a convenient option, there are certain hacks that you can put into effect to save money on these loans.
- Pay twice a month: Instead of making a single payment every month, consider making two payments in a month on a bi-weekly basis. Although you will be paying the same amount every month, you’ll still end up making one extra payment by the end of the year.
- Watch out for additional charges: While personal loans have competitive interest rates, they have additional fees and charges that can increase the cost of the loan. This is why it’s important to compare different personal loans and keep an eye out for the charges and fees associated with the loan. Make sure to pick a loan that has a low rate of interest and low charges as well.
- Refinance your loans: If you borrowed a personal loan some time back, chances are that you may not really be considering switching the lender assuming it takes too much effort. However, refinancing your loan could help you secure a lower interest rate, thereby decreasing the cost of the loan, especially if your credit score has improved over time.
- Get a balance transfer credit card: If you don’t have much of your loan amount left to repay, you may want to consider getting a balance transfer credit card and transferring the outstanding balance to the credit card. Since balance transfer credit cards usually have a 0% interest rate for a promotional period, you can save on the interest charges.
- Automate your payments: If you have multiple payments to make every month, there is a chance you may forget to make the monthly payment to the lender. One way to fix this is by automating your personal loan payments. This will ensure you never miss your payments and run this risk of it affecting your credit score.
So, keep these tips in mind to save money on your personal loan!
