5 Creative Ways to Pay Your Loan Early

5 Creative Ways to Pay Your Loan Early

As you count the days until your next payday, you probably follow a routine something like this:

  1. You send bill payments at the last possible minute.
  2. If you use checks, you post-date your checks, hoping the bank will deposit them late.
  3. You pay the minimum-due amount on a regular basis.
  4. You take out a payday loan to tide you over until your bank account deposits your paycheck.
  5. You cross your fingers, hoping that all the above strategies will help you get by.

People who struggle to make ends meet might recognize themselves in the above scenario. You may wonder if your situation will ever change. You work as much as you can, but those paychecks never seem to cover all your expenses.

If someone told you that you could pay off your loans early, you might not believe such a statement. After stretching your dollars as far as they could go, paying off loans early might seem like an impossibility.

But don’t lose hope. You can move toward an early payoff by following these creative tips:

1. Round up Your Minimum-Due Amount

Even if you think you can’t possibly spare one extra dime, remember: it doesn’t take much effort to round up your payment, even slightly. For example, if your minimum loan payment is $27.50, round up to $30. The extra two dollars and fifty cents probably won’t stress your reserves too much, and you’ll move up beyond the minimum due.

Think what would happen on a regular car payment if you paid twenty-some extra dollars on your $278.15 monthly payment. After twelve months, you’d move ahead by nearly two whole car payments.

When you round up your payday loan payment, you operate the same way. You’ll cut further into your interest charges as well. Even little adjustments can make a big difference.

2. Make Multiple Payments per Billing Cycle

Most people pay multiple debts each month in addition to basic living expenses. For example, you may have a regular credit card bill, a store or gas credit card, and a payday loan.

Although you might think it’s impossible to pay more than one bill each billing period, think again. Take a tip from the pros:

Split monthly bill payments into bi-weekly payments instead.

For adjustable-interest loans that accumulate higher interest daily, pay twice a week instead of once a week.

If you can’t pay extra payments every two weeks (or twice weekly), make a one-time extra payment instead.

You may also divide your regular payment amount by 12 bill cycles and then add the result to each payment. If you have a $50 regular payment, your extra amount would be $4.16, for a total payment of $54.16. For a longerterm loan, this added amount would add up to one extra payment after a year.

3. Hold a Garage Sale

No matter your financial situation, chances are that you own items someone else wants. During garage-sale season, pool your goods and sell them at a neighborhood yard sale. You can easily find simple online tips for pricing your goods, bundling items together at a discount, and other strategies.

Set aside your earnings towards your early-payment fund. Keep a glass jar or other container in a visible place where you can see your progress. Then, when a payment comes due, use part of your fund to pay more than you normally would.

4. Advertise a Services Auction

Do you have an untapped skill or talent that could benefit others? If so, monetize it during a one-time services auction.

First, think about what service you might auction. Do you make designer-level clothing? Are you a first-rate cook? Consider your work associates, neighbors, and social group. Invite any and all to participate in your “first annual service auction” by pledging an amount for your intended service or product. Social media gives you the perfect venue for your promotion.

You can even offer smaller rewards or gifts (things you already have at home) for those who donate above a certain amount ($20, $50, $100, and so on).

5. Sell Collectibles, Books, or Crafts Online

Most people have plenty of books and recordings around the house. Don’t assume that just because you no longer use these items, no one else will. Some recordings and books may be collectors’ items. Even if they’re not collectibles, online buyers may desire them for sentimental reasons.

If you sell online, take time to factor in your costs (shipping, time and preparation, gas money for going to the postal service, etc.) before you set your prices. Amazon, eBay, and Etsy are all great online venues for selling your goods and craft products. Just read the fine print before you sell so you know what fees each vendor charges.

Set aside all earnings in your early-payment fund for high-interest loans.


Remember, even intimidating debts can give way after small-but-persistent payment efforts. Go ahead. Round up your bill by a few dollars. Make an extra payment if possible. Sell used items at a garage sale or online. Benefit othersand yourself-with a service auction.

Need further help? Talk to your payday loan vendor for further loan payment tips.

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