The "13th Month" Mortgage Hack
Many financial advisors recommend making one extra EMI payment per year (the "13th payment"). On a 30-year mortgage, this simple trick can knock off about 4-5 years from the loan term and save a fortune in interest. You can simulate this by dividing your EMI by 12 and adding that amount as a "Monthly Extra Payment".
Bonus Utilization Strategy
Instead of spending your entire annual bonus on a vacation, consider splitting it 50/50. Use half for enjoyment and half for loan prepayment. Use this calculator to see how that 50% contribution impacts your debt-free date. Often, seeing the result motivates people to contribute even more.
Refinancing Analysis
If you are considering refinancing to a lower rate, use this tool to see if simply increasing your payment on the current loan might achieve similar results without the hassle and paperwork costs of refinancing. Sometimes, paying an extra ₹2,000 is better than paying ₹10,000 in processing fees for a new loan.
Debt Snowball Acceleration
If you are using the Debt Snowball method (paying off smallest debts first), use this calculator to see exactly how fast that first small debt will vanish if you throw an extra ₹2,000 at it monthly. The visual confirmation reinforces your commitment to the strategy.
Suggested tag links: Loan Prepayment, Mortgage Payoff, Debt Free Journey.