Paying just a little bit extra on every loan will have huge benefits in the long run.  This practice allows you to pay off loans quicker so you have fewer payments to make and saves you hundreds or even thousands on interest. 

Here are just 2 examples. 

A) Let’s look at a 30 year mortgage of $100,000 at a rate of 6.5%.  Just by paying an extra $60/month on this loan, you reduce your term by about 6.5 YEARS and SAVE $32,000 in interest!  B) On a 5 year car loan for $15,000 at 7%, paying an extra $100/month helps you pay off your loan 1 YEAR & 5 MONTHS earlier and you save over $800 in interest!  Imagine…own your car in about 3.5 years and have an extra $800 in your pocket! 

Everyone should consider this practice if at all possible.  Even if you can’t make an extra $60 or $100 on each payment, try a lesser amount or make a one time payment in the months you can afford to.  Any time you can apply extra money towards your principal balance; you will save interest and reduce the number of months of your loan. 

 You can always run your particular scenario through a loan or mortgage calculator, or contact your finance company.  Ask your finance company to provide you with an amortization schedule or to help you with this process.

 Now, for ideas on what to do with the extra money you will save, check out some of the other Money Management ideas on this site if you haven’t already.  Thanks for visiting reward AMERICA club .com.  Let us know what you think of our ideas, post your own ideas and tell a friend to check us out!