One of the best strategies to beat the lenders at paying off an simple interest loan is to pay 2 payments one after the other. This will have you recorded as always being ahead and you’ll see your loan statement show you don’t owe a payment the next month. You can also do this by paying extra on your loan and depending upon your interest rate and amount of your payments your statement will start to show a lower amount due each month until it states no payment is due.
This is how you can beat the interest rate on your loan, BUT the lenders are not stupid! They also charge a “Finance Charge” for giving you the loan. So no matter what you do other than paying the entire loan off you’ll still have a finance charge for the life of your loan.
That doesn’t mean this strategy isn’t work continuing. The major benefit to using this strategy is to pay off your loan faster and pay less interest. Because your loan balance is figured each month based on your principal balance and the previous months payments you will eventually cut months and even years off the life of your loan.
If you’d like more help on figuring out how to pay off your loans please contact me for assistance.