The trucking sector of Australia is pivotal to the country’s economy, as it helps transport important commodities across vast terrains. But for independent truckers, obtaining truck financing as well as managing their repayments can feel like a long endurance challenge. Thankfully, there are strategic tactics that can be applied to shorten the loan tenure significantly and get access to vital funds for propelling your business forward. Here are some tips provided by experts to help pay off truck loans easily:
Draft a detailed budget
Start by assessing your current financial status to create a thoroughly detailed budget. Highlight revenue streams, fluctuating costs and steady expenses associated with buying a truck, such as maintenance, fuel, loan settlements and insurance.
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Increase repayment frequency
Instead of repaying the loan in monthly installments, consider switching to a weekly or bi-weekly repayment plan. Doing so will enable you to make repayments quickly and reduce the remaining balance faster, resulting in interest savings.
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Make additional payments
Whenever possible, direct additional funds towards the truck loans you have obtained. Be it from tax refunds, profits from a lucrative haul or work bonus, use those unexpected gains to reduce your debt.
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Eliminate unnecessary expenses
Analyse your monthly expenditure and identify areas where reductions can be made. There are multiple ways you can do so, such as eating outside less, discontinuing unnecessary subscription services, and renegotiating service agreements.
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Make lump sum payments
If you acquire a sizable amount of money, for instance, proceeds from sold assets or inheritance, use it for making a large payment towards your trucking & equipment finance. Doing so will decrease the principal amount as well as the interest you will be paying over time.
Thus, if you have opted for truck finance, use the above tips to manage your repayments efficiently.
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