This is Tip #4 of the How To Save $80,000 series.
Pre-Paying Debt Early (savings $3547)
The title for this tip says it all. The idea is to save money on interest payments for your loans by paying a little extra each month.
Let’s say a small 2-doc practice took out a $50,000 loan as working capital or EMR purchase at 6.8% to repay in 5-years. By paying $500 more a month, the practice could reduce the loan terms by 2 years and save $3547
|Pay Off in Years||Monthly Payments||Total Interest Paid:||Cumulative Payments:||Savings|
People often think, but I don’t have an extra $500, how can I pay down the debt. And my answer to them is, use the savings in tip 1 thru 3 and now one will have enough for tip number #4.
Is this a good tip? What do you think? Do you have a proven, shovel ready, money saving tip of your own? Let’s hear it!