It helps to pay more than your monthly minimum when you can. Paying a little extra each month keeps you ahead of your loan term as well as provide you with some other financial perks.
For one thing, making extra payments on your loan will reduce the overall length of your repayment plan. This will help clear you of debt and enable you to regain your financial independence even sooner, and by paying off your loan ahead of time, you’ll reduce the amount of interest you owe, saving you money in the long run.
Not only that, but your credit score will also improve when you pay off your debts faster than expected. A lower credit score will benefit you in a variety of ways, like lowering down payments and interest rates for a long time to come.
If you’re considering paying more than the minimum on your monthly loan installments, be sure to consult us on our policy regarding this.