Do’s and Don'ts of repaying your personal loan early
11 AUGUST 2023
We share the do’s and don’ts to consider before repaying your personal loan early.
You’ve just gotten a significant raise on your paycheck, and instead of splurging on a new item of clothing; you’ve decided to pay off your personal loan early while you have the means to. Before making this decision, keep in mind these do’s and don’ts to make sure it’s the best choice for you.
Q&As to consider before settling a loan early
Before deciding to repay your loan off early, remember these few questions to make an informed decision.
- Do I know if my lender charges an early repayment fee?
Check your loan agreements for extra charges or prepayment penalties.
- How much could I save with early repayment?
To work out how much you might need to pay in additional fees, consult your financial advisor or use an online calculator.
- If I pay off a personal loan early, do I save interest?
Yes, the sooner you pay off your loan, the less you will pay in interest as interest accumulates over time.
- Will my decision positively or negatively affect my financial position?
Keep in mind the consequences of paying your loan early and how that will affect your situation now. Does your credit score need a boost, or should you stay away from using your savings right now?
Make sure you’re prepared for your decision
No matter your choice, make sure you’re prepared for your decision! Call us on 0861 729 727 to speak to our RCS Loans agents. For more information or for expert advice on loans, click here.