Did you know you can save thousands by adding a meager $20 to your debt repayment? Thanks to the magic of compounding interest, adding any extra dough to paying down your debt will not just reduce it by that amount, but shave hundreds to thousands of dollars off your debt over the life of the loan.
Check out our handy dandy chart illustrating this amazing process. As you can see, An extra $59 a month saves you almost seven years and $40,000 in the long run.
Even a paltry $20 (4 trips to Starbucks) can add up to massive savings:
Almost all of you can come up with $10-20 extra to put towards your debt. If you have student loan debt, a mortgage, or credit card debt, use this calculator to figure out how much you can save by prepaying your debt.
Potential Monthly Savings: $40 – $500 (depending on debt)