| Reducing your overall debt level as much as possible | | | | Firstly, loan providers make their profits by charging |
| is always a good idea, and is usually recommended as | | | | interest, and if you clear your loan early then you won't |
| part of a budgeting plan. If you have some spare | | | | be paying the lender as much interest as you would if |
| funds available, you might be tempted to clear your | | | | your loan went to its full term. Obviously, this means |
| personal loan, as nearly all loan plans allow for full | | | | they will make less profit out of you, and so many |
| repayment before the term is over. However, there | | | | lenders will write an early repayment penalty into the |
| are a few things to bear in mind before deciding | | | | loan agreement to make sure that the arrangement is |
| whether paying off your loan is the best use of your | | | | still profitable for them if you repay early. |
| spare cash. | | | | |