Make smaller payments more often. The easiest way to cut the size of your payments is, quite simply, to make more of them. As well as paying off your loan faster, you will ultimately pay less interest overall.
If you pay your mortgage monthly, consider changing to fortnightly repayments. For example, if your mortgage equates to $2400 a month, cut this in half and pay $1200 each fortnight. As well as having more manageable payments to make, by the end of the year you will have paid off $31,200 rather than $28,800.
Pay just a little bit extra. If you have additional expenses on the horizon make ad-hoc contributions wherever possible. A minimum repayment is just that – for most loans there is no reason you can’t pay more, whether here and there or regularly.
By rounding up to a full number or contributing an extra $100 or even $10, you’ll significantly reduce your mortgage.
It may also be worth considering to put all bonuses, tax returns and gifts into your mortgage.
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