Home Blog The Best Ways & Methods to Pay off Your Personal Loan
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Woman celebrating after paying off her personal loan quickly

Personal loans are an excellent tool for navigating life's joys and uncertainties. Knowing the best ways to pay off your personal loan is important so you can spend less time feeling overwhelmed by repaying bills and more time securing your financial future.

With rising loan interest rates at play, figuring out how to pay off a personal loan faster can be challenging. The good news is there are various strategies you can use to achieve your financial goals and become debt-free.

1. Borrow Only What You Need

Personal loans can be useful in certain circumstances, but remember to borrow only what you need. The more you take, the higher your payments will be, and you'll need to pay longer than necessary.

While lenders will asses your creditworthiness when you apply for a loan, it's up to you to decide if you really need a loan. Here are a few questions you should ask yourself before taking a personal loan:

  • How much money do I need to fulfill this personal matter? 
  • Do I want the money sent to my bank account or creditors (in the case of refinancing)? 
  • How will this loan affect my credit score? 
  • How urgent is this personal matter? 
  • Considering my monthly budget, can I comfortably afford the interest fees? 
  • Do I have a backup plan or savings for unforeseen expenses? 
  • Are there other ways to get some of the money I need?

2. Plan Your Repayment Ahead of Time

One of the best ways to pay off your personal loan is to create and manage a budget to plan your repayment ahead of time. Consider your recurring necessary expenses and plan your loan repayments around them. By breaking your loan down step-by-step and knowing how you'll pay it back, you'll feel less overwhelmed and more in control of your finances.

3. Always Have Enough Funds on Payment Due Dates 

Missing your payment due dates lengthens the amount of time it takes to pay your loan off, but it also has other negative impacts:

  • Payment history accounts for 35% of your FICO® Score.
  • Each missed payment lowers your score.
  • It leaves a negative mark on your credit history for 7 years. 
  • Your account may be sold to a collection agency, which adds a charge-off.

The worst-case scenario for missing your payments is the lender suing you and garnishing your wages, which has a ripple effect on your other financial commitments.

Do what you can to set aside enough money to meet your payment due dates each month. If necessary, move your payment due date to one that works best for you and your financial situation.

4. Make Extra Payments When Possible

While there are many benefits to taking a personal loan, it's important to learn how to pay back a loan fast so you can get back on track with your other financial goals. Extra money like tax refunds or work bonuses can help you make a dent in your monthly payment fees, so make extra payments if possible. Paying an additional chunk whenever you can may also reduce the number of months it takes to pay down the loan.

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5. Switch to Bi-Weekly Payments 

Making bi-weekly payments is an excellent personal loan trick that helps control impulse spending. Making loan payments twice a month reduces unnecessary mid-month spending. It can also accelerate your loan term. You'll save money on the interest charges that occur when you wait until the end of the month to make a payment.

If you feel overwhelmed by debt, making bi-weekly payments can reduce the mental load of paying large lump sums once a month. It's also a better option for people who receive weekly wages and may not be able to pay the monthly lump sum as easily.

6. Round up Payment Amounts

Round up your payment amount to pay off your personal loans quickly. Those few dollars won't make much of a dent in your budget, but over time, rounding off can help you reduce your interest and loan payments. If you have the means, rounding off to the closest $100 can significantly affect the amount of time you spend paying it off.

7. Refinance if Interest Rates Drop

With rising inflation, high interest rates can make paying off your loan challenging, but refinancing can still be an excellent option if lower interest rates are available. It's important to know when and how to refinance. The general rule is that an interest rate drop of 2% or more is sufficient to apply for refinancing, which enables you to pay less toward your final amount in the long run. 

One thing to consider with refinancing is that it's considered a form of debt consolidation, so it may impact your credit score.

8. Sell Used Items or Clutter

Selling items you have no use for can give you a chunk of money you can use to make an extra payment on your loan. Consider putting together a garage or yard sale and getting rid of items you no longer need. You can also advertise your second-hand pieces on online resale platforms.

9. Add a Secondary Stream of Income

Side hustles are becoming increasingly common as people try to combat rising inflation and make some extra cash. They can also help you pay off your personal loans via an additional income stream. Dog walking, house sitting, and babysitting are common strategies to increase your earnings without putting in too much effort.

However, a secondary income doesn't have to come from a part-time job. You can also consider options like getting a roommate or making money off your passions, like selling e-books online.

Apply for a Personal Loan From Atlas Credit Today


With all of the above tips in mind, you can take a proactive approach to paying off personal loans any time you need one. Atlas Credit is here to help make the loan process as smooth as possible, so you can access the money you need quickly.

We don't use your credit score to determine if you qualify for a loan. Instead, we look at other key factors, like your age and income, to help match you with the most beneficial loan option. We understand that everyone's situation is unique, so we adjust our loan terms to each customer.

Once you fill out our easy loan application, we'll get back to you quickly about your loan status — potentially even on the same day! Otherwise, find a location near you to speak with a team member in person and discuss your options.

We can't wait to help you find freedom and peace of mind in your financial journey.

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