© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - How to Repay Your Loan Faster?
Posted 23rd February 2022

How to Repay Your Loan Faster?

Whenever you’re in debt, your main goal should be to repay it as fast as possible. Sure, taking out a loan can be a good thing as it provides access to needed credit.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

How to Repay Your Loan Faster?
Person opening an empty wallet

Whenever you’re in debt, your main goal should be to repay it as fast as possible. Sure, taking out a loan can be a good thing as it provides access to needed credit. 

However, loans can be bad when they accrue too much interest. This post will take you through some tips to help you repay your loan faster. 

How to Repay Your Loan Faster

 

1. Seek Debt  Consolidation and Relief Services

If you have trouble keeping up with debt repayments, you can seek debt consolidation services.

Debt consolidation firms can help you combine all your debt into one lump sum. Therefore, instead of making monthly payments to different lenders, you’ll be making one monthly payment.

Further, these companies can work with lenders to help reduce the interest rates on your loans, thereby reducing the overall cost of the loan.

Various financial relief firms in the UK, such as Reform Debt Solutions, collaborate with other stakeholders to offer borrowers debt consolidation and relief services. 

 

2. Deposit More Than The Stipulated  Minimum Amount Every Month

Clear your debt and save on interest by depositing more than the required monthly minimum. The main goal is to pay an extra amount regularly and repay your loan faster. 

If you have several debt sources, handle one at a time. Clear the balance quickly as you continue depositing minimum payments on the other debts. 

Some loan providers allow borrowers to pay an extra amount every month, stating that it goes towards the principal. Just ensure that you can handle these additional payments without hurting your budget. Instead of making monthly payments, opt for bi-weekly. 

Before making these payments, go through the loan terms and conditions to determine if prepayment penalties or extra fees apply. 

 

3. Make Several Payments More Than Once A Month

Pay your credit card bills regularly, more than the standard once per month. This will help you stay on track of your debt balance and lower your utilisation/balance ratio.

The credit balance/utilisation ratio is the percentage of the total available credit that you’re currently using. This ratio is among the elements used by credit reporting bureaus to calculate credit scores.

 

4. Consider The Snowball Method Of Clearing Debts

The snowball method entails settling the smallest debts first, then taking the funds that previously paid for that loan and rolling it to the next smallest loan. This process continues until you clear all your debts.

This strategy helps you build momentum as every balance is cleared. Although it takes some initial work to establish this technique, it’s what you need to come up with a repayment plan that keeps you motivated to finish.

Studies show that the snowball method is beneficial because it builds confidence—you begin with the smallest loan and get quick wins. This makes you feel like you’re making progress.

You’ll get great satisfaction from clearing a loan and closing the account. This will give you the motivation to proceed to the next debt.

The only con is that you may end up spending more cash on interest payments since you’re prioritising balances over APRS.

 

5. Try Consolidating Your Credit Card Debt

You can use a personal loan to consolidate credit card debt spread over several cards. There are several benefits of debt consolidation, the greatest of them being lower interest rates. If you have a good credit score, you can get an annual rate of roughly 6%.

Furthermore, you won’t have to worry about making monthly payments for each card as all the debt is consolidated into one. To top it all off, it can help improve your credit profile.

Nevertheless, these debt consolidation loans are not suitable for everyone. Like car loans or mortgages, you’ll have to apply first and be approved.

Your credit score determines the interest rates you’ll incur. If you have a bad credit rating, the interest could likely be higher or almost equal to that of your cards.

The loan term can also affect the interest rates. The longer the term, the higher the interest rates and vice versa.

You have to also be on the lookout for any charges like an origination fee that might cancel out any savings you could get from consolidating your debt.

Keep in mind that even if it makes sense to consolidate debts, you’re not in the clear to actually pay it back. You must still purpose to repay the entire loan on time. Although, if you’re having a hard time managing your credit card, consolidating it may be an excellent place to start.

 

6. Try The Debt Avalanche Approach

The best way to reduce your debt burden would be to start by paying off the debts with the highest interest rates first. Doing this will decrease the overall interest rates, reducing your general debt.

After clearing the first loan, move on to the next with the second-highest interest rates and pay them. Do this till you pay off all your debts.

The greatest benefit of this approach is that it’s quick, and you get to save a lot of money. You save a lot on interest when you repay the high-interest loans first.

Moreover, this approach has a straightforward payment structure. The debt avalanche technique is the best if you have difficulties devising your own loan repayment strategy.

The biggest disadvantage with this approach is that you can easily lose morale as repaying your debts can take longer, especially if you have several debts.

Additionally, this technique only works if you have disposable income. The goal is to have some leftover cash after you’ve made all your repayments.

 

Wrap Up

The strategies above will help you pay off your debt in no time. Repaying loans within the specified tenure improve your credit score and increases your success rates for your next loan application.

However, go through the prepayment terms and conditions carefully and don’t make haste to repay the loan urgently in your bid to settle your debt as early as possible. 

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
Leading Insolvency and Asset Recovery Expert
Leadership
11/06/2019Leading Insolvency and Asset Recovery Expert

Grant Thornton BVI Ltd specialises in providing recovery and restructuring services for or to companies registered in the BVI and the Eastern Caribbean. Following their success in Acquisition Intl.’s Leading Advisor 2018 where they were awarded the accolade

Read Full PostRead - Eye Icon
Litigation Experts  on the Case
Finance
26/06/2017Litigation Experts on the Case

Beyerlein Attorneys is a Mannheim-based law-firm, highly specialised in Intellectual Property (IP), life sciences and complex litigation. As part of the Leading Advisor 2017 awards, the firm and Thorsten Beyerlein were delighted to receive the esteemed Leading

Read Full PostRead - Eye Icon
Prepare for the Future with These Investment Strategies
Finance
01/10/2021Prepare for the Future with These Investment Strategies

Don’t just leave your money sitting in your bank account to earn hardly anything in interest. Instead, check out the investment options that are outlined in this infographic from HotForex, and continue reading to learn more.

Read Full PostRead - Eye Icon
A Most Effective Way to Finance Working Capital
Finance
13/02/2024A Most Effective Way to Finance Working Capital

With a portfolio of more than 15,000 happy customers relying on it to aid in the optimisation of their working capital and the reduction of risk to their supply chains, eFactor Network SAPI de CV boasts a state-of-the-art financing platform that improves overa

Read Full PostRead - Eye Icon
Game Changers in a Universe of Solutions
Innovation
16/06/2023Game Changers in a Universe of Solutions

IOS Services Géoscientifiques (IOS) is a consulting group with a geological perspective, dedicated to servicing the mineral exploration industry in eastern Canada. It has been named Québec’s Best Geological Consultancy 2023, following which we have taken a

Read Full PostRead - Eye Icon
4 Tips For Automating Your Business Security Successfully
Innovation
08/09/20224 Tips For Automating Your Business Security Successfully

According to Statistica, 47.3% of companies are embracing automation from a security perspective. If you’re looking to automate your business’ security successfully, you need an awareness of the tools and technologies most beneficial for security automatio

Read Full PostRead - Eye Icon
How Smart Technology is Helping the Manufacturing Industry
Innovation
12/04/2021How Smart Technology is Helping the Manufacturing Industry

The secret to this progression is advances in technology. Not only has it allowed businesses to speed up production and increase efficiency it has brought greater profit margins too. In today’s market, it’s all about ‘smart technology’ or more accurate

Read Full PostRead - Eye Icon
Resolving Franchising Disputes in the UK
Finance
29/02/2016Resolving Franchising Disputes in the UK

Franchising is the granting of a license by a franchisor to a franchisee, which entitles the franchisee to operate their own business using the franchisor’s brand, systems, knowhow and business model.

Read Full PostRead - Eye Icon
The Golden Age of Digital Experience Monitoring
Innovation
24/12/2020The Golden Age of Digital Experience Monitoring

In the midst of a pandemic, using cloud-based technology such as Microsoft 365 has proven vital for employees to stay productive. In October 2020, Microsoft reported 115 million daily active users of Teams. This is where Martello Technologies comes in, offerin



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow