The power of paying off a little more

Unlike some other finance companies, we consider it a win when one of our customers gets out of debt with us. We love getting to know you, but we'd prefer that you're off our books and on with your life! One of the most effective ways to reduce the amount of debt you're managing is also one of the simplest: making extra repayments. It's an obvious option, but what's less obvious is how much of a difference even a small, extra, regular repayment can make, both in terms of how long you're in debt and how much interest you have to pay in the long run.

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How much can a small regular repayment save?

Let's say you've got a financial reset loan with us of about $25,000 on a 15%p.a. interest rate on a 5-year fixed rate term. Over that time, making just the minimum repayments, you'd end up paying an extra $10,000 on top of what you borrowed through interest repayments.

Now, let's say you add an extra $25 a week to your repayments. What impact does that have? Quite a lot, it turns out. Not only would you end up paying off your debt a whole year earlier, but you'd be about $2,500 better off from paying less interest. That's powerful!

You can use the Sorted debt calculators to play with the extra repayments and see how much it could save you. Here's the link. We recommend using the "Other" loan option, as it gives you more options to work with compared to the Personal Loan option.

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Are there costs to making extra repayments?

With Money Sweetspot, we don't charge you extra to make more or early repayments. Some finance companies do - but we want to make as easy as possible for you to pay off your debt. There's way more interesting things for you to use that money on!

You can make extra payments into our bank account Money Sweetspot 02-0192-0544458-00 using your LoanID and name as reference. Simple as that - you can do one-offs, or turn it into an automatic repayment to make it a regular extra contribution.

But that's not all! By reading this article on our customer portal, you've earned some points that you can redeem to pay off some of your loan with us. Combine this with those extra repayments, and you'll be out of debt (and on with life) in no time.

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