When you owe money to someone, it’s natural to ask yourself, “How can I pay it back faster?”

Well, if you are in car loan debt, you’ll want to pay it back as fast as possible. The quicker you pay back the loan, the lesser interest rate you’re charged. More importantly, you get a huge burden off your head and free up for your finance to spend in the future. And, if you have a bad credit, paying it off quicker will improve your credit history and your credit score.

So, how do you pay back your car loan quickly?

Regular Payment

The biggest priority other than paying your car loan quickly is to pay it regularly. So many debtors imagine paying off their car loan quickly, but they can’t even pay the loan regularly. Create a budget and allot your income to your various needs like groceries, cost of living, and debt payment. This way, you always have money to make the car loan payment at the end of the month. Also, ensure you have a tight schedule so you don’t land up making a late payment.

Make it a Bi-Weekly Payment

If you can manage monthly payments, increase the pressure and make it bi-weekly payments. Since, you’re paying twice a month instead of once a month, you’ll be paying the loan much quicker. However, during that time, the financial strain will be much greater than before.
However, it’s better to stick to monthly payments and avoid late payments, than go for bi-weekly payments if you can’t manage it.

Throw in Your Bonus

Got a bonus from your employer? Don’t blow it away. Use it to make a lump sum payment for your loan. An extra payment every year can quicken the repayment pace.

Earn a Little More Cash

Try to earn a little bit more. You can try to get a salary raise at work or switch your job to one with a better pay. Another option is to earn some cash on the side. You can freelance your expertise and earn a little extra cash. Use this to improve the amount you pay back.

Paying off your car loan quickly is a challenge. But it can be done with discipline and perseverance.