Deposit any spare cash into your loan as soon as you can

Written by renxue January 09, 2008 17:18

Extra repayments at any time help reduce the time and cost of a loan. But for maximum time and cost savings, you should make extra repayments earlier, rather than later - thanks to the powerful effect of compounding interest over time.

When a repayment is due, every extra dollar paid will reduce the principal and therefore the interest payable next repayment. That saving then compounds, making an enormous impact over the life of the loan. So an extra dollar here and there now, could save you thousands in the future.

And features like a redraw facility can give you the added flexibility of being able to access any extra repayments when you need it. Ask a Suncorp lending specialist if your loan has this functionality available and how to use it.