Paying off loan too early right or wrong?

[Augusta]

Getting a loan might most times isn't as difficult as paying back. This is because a lot of loans might not need you depositing any money before getting the loan. So all you would need might just be you presenting some information and the correct documents and you are handed your loan.

A loan isn't free money you would have to pay back at a specified period and even with interest too. So with that when you plan to get a loan you should planned how you would pay back without complications. So this bring us to the question of can one be too early to pay back a loan? Yes if you start paying back the loan before the stated date you might be too early. But is it right or wrong? Yeah it is right because paying back your loan too early comes with a lot of benefits which includes the below;

You would have a lower interest rate especially if you were given a particular percentage of reduction if you finished your payment on a specific period.

Getting a loan again from such an institution will be at a snap of a finger.

You would have lower your debt to income ratio on time

What do you think?

 

[Shaf]

It's way better to pay back your loans earlier than agreed, especially if it's a financial institution like a bank.
The greatest benefit is not to them, but yourself as you you get peace of mind to pursue other endeavors without thinking about any deadlines. You can focus on your business or job, start saving earlier and invest any profits while reducing your expenses.

The other benefit is that you gain the trust of those you borrowed the money from, and people around them too. This trust makes it easier for them to give to you again whenever you need it without doubt. It also increases the amount they can give you each time of you do this on a consistent basis.


It's quite interesting to me though, that some people find paying back debt to be difficult. If you can create the habit of only borrowing and buying things on credit when you have no option, you will find it easier to pay back loans.

 

[Augusta]

You got the point exactly, paying back a loan earlier than expected is a good one as you would doing yourself good than bad. There are some great benefits that comes with this action especially if you were given the promise of leaser interest rate when you make your repayment as swift as possible.

The truth is even getting some dollars off your initial payment repayment amount is a good saving strategy. You would be getting free money that you would have still paid off if you take the step of making your repayment available as early as possible.

Another good thing is that you would have your peace of mind in no time. There's always something about owing anybody let alone an institution that wouldn't spare you if you can't pay back your Owings. So finishing on time means enjoying your peace as early as possible too.

Like you rightly stated when one is able to do the needful as early as possible then you are showing some good level of credibility and integrity for future help without delay. Financial institutions especially banks keep records of this perfectly so that the next one will either be tough or very mild for a customer. if you had comply as early as possible you would get swift help.

 

[Ajebo25]

I think paying off our loan is a very good thing to do as it buids trust, if you lend money from someone you should be thinking of ways by which you can get the money to pay the person back you should infacy pay the person his/her money back before he/she asks for it from you.

It will give the person confidence to trust and confide in you when next you come to borrow money from such people waiting for people you owe money to ask you before you give them their money back is a very bad thing to do.

I have seen where many people borrow money with no hope of even paying back this is a really bad habit don't borrow money which you fully know you can't return it or you have no hope of where you would get money to pay the person back, always be time consistent if you and the person have agreed for you to pay back the money at a particular time don't let that time cross over before you give the person his or her money because you would lose respect from that person it can even lead to violence.