5 Smart Tips to Pay Off Personal Loans Faster

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1. Cut Small Expenses and Add Them to Payments

You’d be surprised how fast little things eat into your paycheck.

Cutting even $5 a day from small habits can free up serious money to pay off your loan faster.

Those skipped coffees or unused subscriptions can shave months off your repayment.

Here’s where to find those hidden savings:

• Subscriptions. Cancel what you don’t use or share with family.
  
• Food delivery. Cook simple meals at home and save the fees.
  
• Impulse buys. Wait 24 hours before buying anything non-essential.
  

👉 Here’s How You’ll Do It: Track small daily expenses for a week, cut the ones that don’t bring joy, and send that money straight to your loan.

Make It Easy: Use Rocket Money to automatically spot and cancel sneaky subscriptions draining your cash.

2. Use Extra Income to Pay Down the Balance

That birthday money, tax refund, or side hustle cash? Don’t let it vanish into random spending.

Every extra dollar toward your loan is like fast-forwarding your debt-free timeline.

You’ll barely miss it, but your loan balance definitely will.

Here’s where you can find extra payment power:

• Side gigs. Deliver, freelance, or rent out stuff you don’t use.
  
• Bonuses. Send part (or all) directly to your loan balance.
  
• Refunds or rebates. Treat them like surprise payments toward freedom.
  

👉 Here’s How You’ll Do It: Set a rule that at least 50% of any extra money goes to your loan. non-negotiable.

Make It Easy: Keep a “debt fund” envelope where all unexpected cash goes before temptation strikes.

3. Set Up Automatic Payments

Forgetting a payment isn’t just stressful. It can cost you late fees and extra interest.

Auto-pay keeps you on track without having to think about it.

It’s like putting your debt on cruise control toward zero.

Here’s why auto-pay works so well:

• Never miss a due date. Your payments go out automatically.
  
• Possible rate discounts. Some lenders offer lower interest for auto-pay users.
  
• Less mental clutter. No more “Did I pay that?” moments.
  

👉 Here’s How You’ll Do It: Log into your lender’s portal and turn on auto-pay for the minimum amount. Then manually add a little extra each month.

Make It Easy: Use a bill tracker calendar to keep tabs on what’s automated and when it hits your account.

4. Make Biweekly Payments Instead of Monthly

Want a simple trick to knock months off your loan without feeling it? Split your payment in half and send it every two weeks.

You’ll sneak in an extra full payment each year without even noticing.

It’s small, consistent progress that builds serious momentum.

Here’s why this works:

• Less interest. Balances shrink faster between payments.
  
• Extra payment. 26 half-payments = 13 full payments per year.
  
• Better budgeting. Matches most people’s biweekly pay schedule.
  

👉 Here’s How You’ll Do It: Divide your regular payment in half and schedule it every two weeks. Your loan will drop faster automatically.

5. Use Windfalls or Bonuses to Pay Extra

When you get extra money, your first thought might be to celebrate. But using it for your loan means you’ll have even more to celebrate later.

Applying windfalls directly to your loan makes a visible dent in your balance overnight.

It’s the fastest shortcut to freedom you’ll ever find.

Here’s where to find those windfall opportunities:

• Tax refunds. Send them straight to your loan.
  
• Work bonuses. Use part to enjoy, part to crush debt.
  
• Cash gifts. Redirect generosity into progress.
  

👉 Here’s How You’ll Do It: The next time you receive a big payment, immediately send 80% toward your loan before you have time to spend it.

Make It Easy: Use Betterment Cash Reserve Account to store windfalls temporarily before transferring them to your loan balance. It keeps the money safe and purposeful.

📌 SAVE IT FOR LATER! 📌