5 Smart Stress-Free Steps To Pay Off Your Car Loan

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1. Pay More Than The Minimum

Paying the minimum keeps your lender happy, but not your wallet.

Even an extra $25 each month chips away at interest and shortens your loan.

• Round up your monthly payment. If it’s $327, pay $350 instead.
  
• Add extra income from bonuses, side hustles, or refunds directly toward the principal.
  
• Automate payments slightly above the minimum so you don’t second-guess it.
  

👉 Here's How You'll Do It: Log into your loan portal and manually increase your recurring payment by a fixed amount starting next month.

2. Make Biweekly Payments

Here’s a trick the banks won’t tell you. Two smaller payments are better than one big one.

You’ll make one extra full payment each year without even noticing it.

• Split your monthly payment in half and pay every two weeks.
  
• Reduce interest faster since payments hit more often.
  
• Finish your loan early without stressing about a huge lump sum.
  

👉 Here's How You'll Do It: Set your pay schedule to match your car payment, one-half right after each paycheck.

Make It Easy: Keep a biweekly bill calendar notebook near your workspace to check off each payment.

3. Free Up Extra Cash For The Loan

If money’s tight, you don’t need to work harder. You just need to redirect what’s already leaving your wallet.

Cut a few small expenses, and suddenly you’re saving hundreds every month.

• Cancel unused subscriptions or free trials that quietly renew.
  
• Cook at home and send your takeout savings straight to the loan.
  
• Use cashback apps and apply those rewards to your next payment.
  

👉 Here's How You'll Do It: Go through your last month’s statements, cut one unnecessary expense, and reroute that cash into your car payment.

Make It Easy: Use Rocket Money to find and cancel hidden subscriptions automatically for instant savings.

4. Sell Unused Stuff To Pay Faster

You probably have things lying around your house that could pay a full car payment or two.

Turn clutter into cash and your loan balance into history.

• List old clothes, gadgets, or decor on Facebook Marketplace or Poshmark.
  
• Price fairly to sell fast and keep the momentum going.
  
• Apply every dollar from those sales directly to your car loan.
  

👉 Here's How You'll Do It: Pick three items this weekend, list them online, and use that cash for your next car payment.

5. Make One Extra Payment Each Year

One extra payment per year might sound small, but it’s pure magic for your loan.

It cuts down interest and helps you finish the race way ahead of schedule.

• Save a little each month to cover the extra payment by year-end.
  
• Use tax refunds or bonuses for that one big push.
  
• Watch your loan term shrink while your savings grow.
  

👉 Here's How You'll Do It: Divide one extra full payment by 12, and add that amount to your regular payment each month.

Make It Easy: Use a Betterment Cash Reserve Account to automate small monthly transfers and fund your yearly payment goal.

📌 SAVE IT FOR LATER! 📌