Tip #21 – Save thousands by pre-paying your debt
Save money on interest payments by paying a little extra off your loan each month. Because loans are usually large amounts spread out over many years, the savings can be significant. Say you have a student loan with a 10 year term at 6.8%; you’ll pay around $115 per month. Even just paying an additional $20 per month will lessen the amount of interest you pay and by putting more towards the principal you’ll pay down that loan faster.