It’s not just about how much interest you’ll save. Many people don’t realise how paying even just a small amount more each month, can dramatically shorten the term of a loan or how long it takes to pay off credit. That frees up time and money to do something else and of course relieves the burden of debt hanging over your head sooner! Nice.
We’ve given you four debt examples below ($1,000 / $5,000 / $20,000 / $300,000), to show you how much faster they could be paid off:
Based on 19% interest rate & minimum monthly payment 3% of the balance (or $30 per month):
By paying just $50 more per month:
Based on Three Year Term & 14% Interest Rate:
By paying just $100 more per month ($271):
Based on 5 Year Term & 15% Interest Rate:
By paying just $134 more per month ($600):
Based on 30 Year Term & 4.5% Interest Rate:
By paying just $200 more per month ($1,720):
Note: We always recommend that first you save money for possible ‘financial shocks’ in the future. THEN spare cash or extra savings can be used to pay off debt faster.
See our Blog Post: Avoid Nasty Financial Shocks
Do you have high-interest debt?
Find out how you can have a better relationship with your money! To help you pay off debt faster, try our simple yet powerful online Journey: Get on Top of Short-term Debt.