Car loan payments come second in the pecking order for major monthly expenses, when compared to home loans. Hence, it is very important to pay off your car loan before the tenure is up, to not just increase your credit score, but to also build up savings. While cars are a necessity of modern life, making sure we have the right loan payment plan for them is also as important, if not more.
Here’s how you can manage your auto-finance EMI payments with a bit of due diligence.
Skipping Payments is a NO
No matter how tempting it may seem, skipping payments is a slippery slope towards letting your car loan get out of hand. Unless there’s an extenuating circumstance, making monthly payments on your car loan should be a habit. Even if there are holidays or other expensive purchases you need to make, make sure your car finance EMI payments are made on priority.
Extra is Good
It may seem like a push, but try to make at least a couple of extra payments every year. Like when you get bonus at work, or come into unanticipated windfall, utilise the money towards repaying your auto-finance payments. Curb your enthusiasm when you find extra cash at hand and spend it on clearing that auto loan.
Find the Best Rate
The best way to ease your auto-loan payments is to get the best rates when you acquire a car loan. Assess your financial situation and put down a budget. Figure out how much you’re okay to spend as auto-loan EMIs every month. Opting for a loan with a shorter tenure may seem like added pressure but it’s better because loans with longer tenures will have you end up paying more, cumulatively, during the loan duration.
Round It Up
One of the best ways to keep chipping off the principal loan amount is by rounding off your monthly payments. Like if you have to pay 12,470 each month as EMIs, round it up to 13 or 14,000. These little additional payments will build up to eliminating at least a couple of months from your loan tenure. Also, feel free to up the payment amounts as much as you can if you have the bandwidth.
Don’t rush into signing any loan document without research and assessment of your own financial situation. Compare the offers on hand before you sign the dotted line. Just browse through Kuwy and see what our lenders have in store for you. Log onto www.kuwy.in or download our app from the Android or Apple play store.