If you own a home or a car, or have a college education, chances are you’ve had to take out a loan to pay for one or all of them. Managing any type of debt can be stressful, especially if you’re burdened with high interest rates. Of course, paying off a loan early can save you money on interest and free up your cash flow sooner. But you need to take a strategic approach to early repayments, depending on the type and terms of the loan. Here are some things to consider before you dive into paying off debt early.
Pay Off Car Loan Early | Principal vs. Extra Payment Explained
Before we get into the how, it’s important to consider the why. Here are some pros and cons of early loan repayment.
Save on interest costs over the term of the loan
Free up cash flow faster
