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5 Simple Ways to Pay Off Your Car Loan (Much) Faster

5 Simple Ways to Pay Off Your Car Loan (Much) Faster

Having a large car payment can make it hard to pay the bills. And if you have payment terms lasting five or more years, it’s beneficial to pay it off sooner rather than later.

Imagine what you could do with a few hundred extra dollars each month. You could save for retirement, purchase a house instead of renting, enjoy a vacation, or any number of things that seem impossible at the moment.

Here are a few practical and simple tips for paying off your car loan faster and more efficiently:

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1. Rent Your Car Out on Turo

Don’t have the time it takes to be an Uber driver? There are some other ways to make money with your car. One option is to rent it out.

Coupon Ninja, a leading site for discounts and deals, is fond of using Turo. “If you’ve got a relatively nice car but don’t drive it every day, you can make some money by renting it out through Turo. Listing is free, you can set the minimum daily price, and you can turn down any prospective renters.” Not bad, eh?

2. Make Bi-Weekly Payments

Not quite comfortable with someone else driving your car? Don’t worry – you don’t have to relinquish control just to pay off your loan. There are plenty of other options. One method includes splitting your payment in half and making bi-weekly payments, as opposed to monthly payments.

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This may seem like the same thing – and it is to your bank account – but it actually ends up benefiting you in the long run. By making a payment every two weeks, you end up making 26 half-payments annually. That’s 13 full payments (one more than the 12 you’d usually pay).

If you have a five-year, $10,000 loan, you’ll only save $30-$40 in interest. However, the real benefit is that you end up paying off the loan six months sooner. This is considerably quicker and lets you regain your financial freedom much sooner.

3. Round Up Payments

Another option is to simply round up your payments each month. For example, let’s say your monthly payment is $264 per month. If you were to pay $300 instead, that would equal an extra $432 per year – more than one extra payment. This will also allow you to shorten the length of your loan by a few months.

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4. Wrap your Car With Advertising

If you’re one of those people who could care less what others think about them, then you can earn some money by turning your car into an advertisement.

“If you don’t mind your car being a moving billboard, then sign up with MyFreeCar.com, which will ‘wrap’ your car with advertising,” Bankrate.com explains. “You’ll get paid while you are doing your regular driving.”

5. Sell or Refinance

Finally, there’s always the option to sell or refinance. If you feel like you can take on a bigger loan payment in return for paying off the loan quicker, then don’t hesitate to contact the lender. They may or may not take you up on this offer, but it’s worth checking out.

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If you aren’t attached to your vehicle and don’t mind trading in for something a bit cheaper, you may be able to lower your loan payment and then pay it off a few months, or years, sooner.

Enjoy the Freedom of No Car Payments

Car payments are a drag. Not only do they hurt your monthly cash flow, but they also cost thousands of extra dollars in interest over the course of your ownership. With that being said, it’s important that you actively identify the best ways to pay off your loan. Your wallet will thank you in the long run.

Which techniques will you try?

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Larry Alton

Business Consultant

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Last Updated on August 20, 2018

30 Fun Things To Do With Your Friends Without Spending Much

30 Fun Things To Do With Your Friends Without Spending Much

Spending time with friends is, in and of itself, a great way to pass the time without spending a lot of money. But if you and your friends are used to going out to clubs, pubs or eateries together as your way of hanging out, then you can change it up a bit and save some money too.

No matter where you live, there are plenty of places to go and do fun things that don’t cost a lot.

If you are having trouble convincing your friends to do things on the cheap, then be upfront with them. Tell them straight out that you can’t spend that kind of money right now — and don’t let them pay for you either. But here are some great alternatives you can offer.

30 Fun Things To Do With Friends Without Spending Much

1. A potluck dinner party. Host a dinner party and ask everyone to bring a dish to share. If you are not comfortable with cooking, maybe try and learn how to cook a new dish together with your friends.

2. Host a spa day. Give each other manicures. Try out new hairstyles. Make some facial masks or exfoliates using natural, at-home ingredients. Then drink mimosas.

3. Movie marathon. Log into Netflix and watch every episode of “Stranger Things” Or do an ’80s movie marathon, watching “Pretty in Pink,” “The Breakfast Club” and all of our old favorites. Don’t have a Netflix membership? Get the free trial just for the marathon!

4. Pinterest party! You know all of those cool Pinterest crafts you say you’re going to do? Do them. At home one night with friends. Then make up some of those bacon-wrapped whatevers you’ve been dying to try!

5. Go to the park. Pack a picnic. Hang out. Watch people. Play on the swings.

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    6. Have an organization party. Set up a day of each weekend where you go to each of your friends’ houses and help them clean out a closet, a room, a garage, whatever. Serve drinks and food and trade stuff among yourselves.

    7. Hold a yard sale. After all of that cleaning, why not hang out together and make some extra cash too?

    8. Concerts in the park. All summer long, many parks host free concerts. Go with your friends. Hang out, bring a picnic dinner. This is a very relaxing way to chill out on a hot summer night after work.

    9. Volunteer together. Offer to do the yard work for the local senior center or hang out with the kids at the YMCA. After a few hours of volunteering together, you will have new respect for each other and something new to chat about.

    10. Play board games. Drag out the Scrabble or the Yahtzee. You can hang out and play all sorts of games with large groups or small ones. Hold a tournament and compete against each other. Here’re some board games ideas.

    11. Video game tournament. Not into board games? OK. Well, how about a video game tournament? Whether it’s the latest dancing game or “Call of Duty,” play against each other and award prizes (or food) to the winners.

    12. Grab a ball and a bat and go play baseball at the local park. Grab a basketball or a tennis racket. Most parks have courts and fields you can use for free as long as there isn’t an organized event going on.

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    13. Go to the school play. This might cost a little for admission, but it’s a great way to support your community and have a fun time.

    14. Iron Chef night. Bring your friends over and have an Iron Chef night where you cook dinner out of only the items in your pantry. No buying anything!

    15. Go dumpster diving. Yup. I said it. Check out the dumpsters in your area and see what you can find. You might even find dinner! Here are some tips for respectful diving.

      16. Go to yard sales. Take all that money you made at your yard sale and cruise around your town together looking for cool stuff. Maybe you could even fix something up and resell it.

      17. Go fishing.

      18. Go camping.

      19. Find some cool trails around your town and go hiking. Here’re some of the best hiking trails you should try.

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      20. Get out the bikes and bike everywhere for a weekend.

        21. Dig out the old croquet set — or borrow your Mom’s — and play croquet. Do it! Totally fun.

        22. Swap movies and music. Have everyone bring over a box of old movies and CDs they don’t want anymore — or don’t watch anymore. Then swap with abandon.

        23. Go on a walking tour of your town. Most towns or cities have a historic district. Find out if there is a walking tour available. If not, make one up!

        24. Scavenger hunt. Put your friends to the test — yes, this is for grown-ups — to find different things in your city…like a certain bike rack, a vintage sign, that sort of thing. The winner gets a dinner cooked by the losers.

        25. Find out when the free days are at your local museum or zoo. Most have them and they can be great fun to visit with friends.

        26. Hold a quilting bee. No, you don’t have to be fancy — or old — for this. Grab some old T-shirts that you love, old jeans, whatever. Cut them into squares and sew them together. Who knows? Maybe it will become a regular thing?

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        27. Go to Open Mic night. Your town is likely harboring some great talent at an open mic night that has no cover and cheap drinks!

        28. Go to a religious service. Even if you’re not religious, going to a service in an unfamiliar religion can be enlightening and a great way to meet new people.

        29. Find a swimming hole. Head to the old town swimming hole — or find a new one. What a great way to spend a lazy afternoon with friends.

          30. Start a book club, card club (canasta anyone?), sewing club or scrapbooking club. Something you and your friends like. My parents used to belong to a cooking club where once a month all of their friends gathered at one house and the host family cooked a meal from a different country. I learned a lot about food that year.

          You don’t really need to spend much to have lots of fun with your friends! Pick a few of these ideas and start trying them out this weekend with your friends!

          Featured photo credit: Unsplash via unsplash.com

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