Loans make big purchases and business ventures possible, but repaying them efficiently can save you a lot in interest. Whether it’s a home loan, personal loan, or business loan, here are three strategies to become debt-free faster.
1. Make Extra Payments Whenever Possible
· Even small additional payments toward the principal can significantly reduce interest over time.
· Check if your lender allows prepayments without penalty.
· Prioritize high-interest loans first for maximum savings.
2. Opt for Shorter Tenures When Refinancing
· If refinancing your loan, choose a shorter tenure even if the monthly EMI is slightly higher.
· Shorter tenures cut down interest costs drastically over the life of the loan.
· This works well for home loans and personal loans.
3. Make Bi-Weekly or Weekly Payments
· Instead of paying EMIs monthly, split your EMI into two smaller payments every month or pay weekly.
· This reduces the outstanding principal faster, leading to lower total interest.
· Works best with lenders who allow flexible EMI schedules.
✅ Final Takeaway
Becoming debt-free sooner isn’t just about paying off your loan—it’s about strategic payments that save interest and reduce financial stress. Start implementing these strategies today to enjoy financial freedom sooner.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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