Imagine how much better your life would be if you no longer had debt. Let’s talk about making car payments, specifically. If you’re like many other drivers, you may spend hundreds of dollars each month on a car loan, and you may still have years left before the loan is paid in full.
Without this expense in your budget, you could save more money for a vacation, a new home, or even your next car. You might enjoy more freedom in your lifestyle, like having a nice evening out without worrying about your budget. Paying off your auto loan – or whatever debt you owe – early might seem like an unattainable dream, but it’s easier than you think. Here’s how.
How to Pay Down Your Car Loan Faster
When many people think about paying down their auto debt fast, they think about doubling or tripling their car payments each month. This can seem relatively impossible given your current budget unless you pick up a side gig or make other drastic changes.
In reality, however, a spare change savings app could help you find the extra cash that you need through your everyday purchases. A good savings app monitors your spending activity and rounds each purchase up to the nearest dollar. The difference is stored away so that you can allocate it toward an extra car payment at the end of the month.
For example, if you buy lunch for $12.43 today, the app would round up to $13. The 57-cent difference will get stashed away. Because the savings amounts are small, you may barely notice that the money is being set aside for you. At the end of the month, however, you could easily have a few hundred dollars or more available for debt reduction.
Paying Down Debt Fast Using Paydownhero
If you think that paying down debt faster will be a hassle, Paydownhero will change your mind. In fact, by following three easy steps, you could be socking away money for your next extra car payment in only a few minutes.
Here’s how it works:
1. Download the Paydownhero App
Paydownhero is available for all iOS users through the Apple App Store. The app is free to download, and the total cost to use it equates to roughly a few dollars each month. Once the app is on your phone, you are ready to put it to work for you.
2. Link Your Bank Account
Because the app monitors your spending and rounds up your purchases, it needs to be linked to your bank account. Simply follow the prompts on the app to make the necessary connection. Rest assured that the app uses a solid encryption method to protect your personal data.
3. Log into Your Auto Loan Account
The app also needs access to your car loan account. This is to make payments and estimate the amount of interest savings that you are accruing. Through the app, you can log into your car loan account to link it. The majority of loan providers play nice. If your lender can’t connect digitally, please add the information from your car loan statement to start saving!
Saving money by paying off debt early
When your loan is paid in full, you will have extra money to spend and save each month. However, this is not the only benefit of paying down your car loan faster; you can actually save money on interest charges when you pay off the debt sooner. Why? Interest accrues on your account each month, so the sooner your debt is paid off, the more money you can save. Through the app, you can monitor your savings in real-time.
Paying off your car loan early can seem like a headache, but rest assured that there is an easy solution available. Paydownhero’s spare change savings app enables you to set aside your spare change each day and allocate that toward debt reduction. Depending on how often you make purchases and what your current loan balance is, you may be able to shave many months off of your payoff date and save hundreds of dollars or more in interest charges. Now is the perfect time to download the app and experience its power for yourself.