Make Bi-Weekly Payments

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One popular strategy for accelerating the payoff of a loan is to make 'bi-weekly' payments. Under the bi-weekly plan, you'll make half of your monthly payment to your lender every two weeks instead of a full payment once a month. One important thing to note here is that this method will result in you making 26 payments each year, which are two more than you would make if you made a payment on the 1st day of the month and middle of the month, so you'll have to budget accordingly. By making bi-weekly payments, you'll comparatively make an extra monthly payment each year which will reduce your amount owed. By making payments every other week, you'll also save a bit on interest charges for the outstanding loan balance that would normally still be there until the end of the month.

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