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Repay Loans as Quickly as Possible

Topics: Loans

Pay all loans back as soon as you comfortably can. Even though it is a 32-year loan, you do not need to take 32 years to repay. When you have an extra million yen or two, tell the bank you want to make an extra payment on the loan. There is a minor fee for recalculating things, but not only does such advance repayment shorten the term, it dramatically reduces the total interest paid. Unless your money is earning more than you're paying, you're better off repaying the loan. This is called kurage hensai in Japanese.

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Page last modified on September 09, 2006, at 04:37 PM
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