Of course, as a consumer, you always have the right to pay off your loan whenever you want. It may be that you suddenly have money available so that you have the opportunity to pay off a large portion of the debt at once.
Or it may be your monthly available amount gets larger and you therefore want to pay off a larger portion of the loan each month.
How to pay off faster
Here we look at how you can pay off your loan faster.
Start by contacting the lender
The first thing you need to do, of course, is to contact your lender. You can read more about their specific terms and conditions on their website, but you can get the best insight into the applicable rules by contacting them in person. That way you can also talk to them about how much you now want to pay off each month and how long your new term should be.
Larger and reputable lenders – both in terms of banks and online providers – have a high level of customer service. They will always provide satisfied customers, which is why they will of course also help change your installment plan.
Get a plan for what you can pay off month
The next step in the process is to have a clear plan for what you now have the opportunity to pay off each month. Of course, you should have researched this yourself in advance by looking at your new budget and your monthly available amount.
That way, you have an idea of what your new installation plan should look like. Next, you need to pass this information on to the lender so you can jointly create a new plan for what to pay each month.
3. Pay attention to whatever changes cost you extra
Although changing maturity and installation plan is a service offered by virtually all lenders, not everyone does it for free. Some providers charge a fee to change your maturity on the loan.
It is important that you investigate this on your own or ask your lender about it. Then you are already prepared for what the changes will cost you, you can put this into your budget and you can decide if you want to make the changes anyway.
However, it is also important to mention that not all providers charge an amount for early repayment of the loan. There may also be cases where you can pay the amount you want at any time at no extra cost. Therefore, it is important to examine the specific rules of your particular lender.