Bike loans can be expensive and can really burn a hole in your pocket unless you focus on some key things. There are many steps that you can take that will go a long way to helping you pay off your bike loan even faster. Here are some quick tips to help you pay your bike loan off in record time.
Get ahead and stay ahead of the game
A great way to start ahead of the game is to put as much upfront deposit into the loan as you can, this will look good from the financiers point of view as you can show that you have been able to save money for the deposit. Another way of adding equity into your loan is by adding lump sum payments as you go. Make sure that your loan is set up so you can easily make additional repayments at no further costs. Your wallet may take a bit of a hit upfront but you will be amazed as to how much money this will save you in the long run, plus you get to own your bike faster.
Take your bike loan out over a shorter term
When you take out your bike loan you could be offered many repayment term options. It is a good idea to speak to your bike loan company and find out what your shorter loan term options are. If your loan is set up as a 60 month repayment period, you may be able to reduce it to 36 months or even less. Your repayments will be higher, but it means that you will pay it off much quicker and save yourself a bucket load in interest charges. Although a longer term with much smaller repayments can look attractive the bigger picture is that the less your bike costs you overall the better your financial standing is.
Keep your eye on the ball
Having your bike loan repayments set up on a direct debit system makes it so easy to remember paying for your loan on time. The only issue is that we tend to set and forget about the loan and don’t keep track of how our repayments are going and how the loan is decreasing. Maybe you start earning more money by getting a pay rise or a new job and your weekly financial situation improves. Why not divert this extra money onto your loan and get it paid off quicker? If we set and forget it just ticks along racking up the same amount of interest every week. Be mindful of your loan progress and take advantage of every one of your financial windfalls by getting rid of your debt faster and saving yourself more money. Make your money work for you, don’t work for the money.
Set yourself up a budget
Before you get a bike loan, sit down and track your income and expenses. There are lots of online tools now available for you to do this and these companies have made it so easy to do. I know that once I started to take a look at my finances I slowly realised how much more money I really had. (Or could have if I didn’t spend so much) Don’t be scared to give a basic budget a go, having a financial budget and some realistic financial goals will not only help you get motivated but also a little more educated about your world of money in general. If you get this right you could then have even more money to knock onto your bike loan to get it paid off even quicker.