tax refund cash advance emergency loan

A tax refund cash advance emergency loan can be a lifesaver when you need extra right away. However, it’s always great to have a smart payback strategy in place before you borrow money. 

If you’re looking for a way to pay off those fast cash loans quickly, you’re in the right place!  Using one or more of the suggestions below, you can get out of debt fast, even if you don’t have a ton of extra money!

Why Pay Off Your Tax Refund Cash Advance Emergency Loan?

When you took out your loan, you set a repayment schedule. You might wonder why you would worry about paying it off sooner than you have to. Well, there are actually several reasons.

The first is the interest you’re paying. This accumulates on a daily basis, so the sooner you pay your loan off in full, the less it will cost you.

The second reason is cash flow. It’s easier to create and stick with a budget when you don’t have a lot of monthly payments to make. Eliminating the payments you’re making on instant cash loans and other types of debt will free up your income for other things.

One thing to note, however, is that some lenders don’t allow you to pay your loan off early. In this case, you’ll have to follow their rules and keep paying until the loan term is over. In the future, you’ll want to choose a different lender! 

Other lenders charge a prepayment penalty. Before you implement the strategies below, you’ll need to determine how much you’ll save in interest versus the penalty. In most cases, it’s still worth it to pay your loan off early, but it’s something you’ll want to be aware of.

4 Smart Loan Repayment Strategies

There are several ways to pay off your loans early. The following are four of our favorites. You can choose the best options for you depending on your current financial situation.

1. Make More Frequent Payments

You’ll pay your debts off faster if you make more frequent payments. If you’re making monthly payments currently, increase this to bi-weekly. If you’re already paying bi-weekly, make it weekly.

For example, let’s assume you’re paying $200 a month on your loan. Instead, you’ll pay $100 every two weeks. This won’t affect your budget, since you’re still paying the same amount, and the lender won’t care because they’re still receiving the same amount. However, each payment you make reduces your principal balance a bit more before the interest rate is calculated. The difference may seem small, but it adds up over time.

2. Round Up Your Payments

Do you have just a little bit of extra money available? Round up your payments! This could be as small as rounding up to the next dollar or you can make a bigger impact by going to the next 10.

For example, let’s assume that your payment is $47.20 every two weeks. Try rounding this up to $48, $50, or even $60 and you’ll start chipping away at that principal balance a bit faster. A great benefit of this option is that you’ll barely notice the difference when it comes to your weekly budget.

3. Make an Extra Payment

This is an excellent option when you have a windfall and find yourself with some extra cash. Did you get some money for your birthday, finally sell that Xbox, or get a bonus at work? Use it to make an extra payment (or two!) on your loan balance.

Since you weren’t planning on having the money anyway, it won’t hurt your budget. And, taking this step towards securing your financial future is one of the best gifts you could give yourself.

4. Look at All Your Debts

If your tax refund cash advance emergency loan isn’t the only debt you have, it’s smart to look at all your debt as a whole. This will allow you to create a smart strategy to get yourself completely out of debt as soon as possible.

There are two popular methods to consider: The debt snowball and debt avalanche. The snowball method involves paying off the debts with the smallest balances first. This makes it more likely that you’ll stick with the plan because you’ll feel the emotional “win” of making progress.

The avalanche strategy uses math to help you eliminate your debt as fast as possible. Using this method, you should save money over the long-term. Using this method, you’ll start by adding up all the payments you’re currently making.

Then, start making the minimum payment on everything except the debt with the highest interest rate. Take all the remaining money and apply it to making payments on that debt. Continue this until that debt is paid off, then apply the money to the next highest and so on.

Start Paying Down Debts Today

It’s important to note that it’s completely acceptable to combine some of the above strategies or switch back and forth. Ultimately, as long as you’re making progress towards your goals, there’s no wrong answer!

Captain Cash: Here When You Need Us

Now that you know how to pay off your tax refund cash advance emergency loan fast, you’re on your way to getting out of debt for good! However, we understand that emergencies tend to happen when you least expect them.

Next time you find yourself short on money, turn to Captain Cash. We offer fast cash loans for bad credit and other types of quick online loans. It’s easy to apply and you could have the money in your bank the same day!

It takes less than five minutes to claim your cash, so don’t wait. Get started now!