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The second way is to make payments more frequently. Even if you can add an extra 10 or 20 each month that money helps shorten the amount of time youll have the loan.

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The entire principal balance comes due at the loans maturity date.

. An interest-only loan differs from standard loans in that borrowers pay only interest for the duration of the loan. The first way is to add a little bit to your monthly payment. An interest-only loan allows for lower payments during the loan term and might make sense when borrowers expect higher income in the future.

If you have an auto loan of 300 a month and receive biweekly checks consider paying 150 with each check.

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