Creative ways to pay off a loan

Creative ways to pay off a loan

author: Bryony Pearce

By Bryony Pearce

Don’t worry, this article isn’t all about shopping in the reduced aisle and never leaving the house. These creative ways will give you the best of both worlds.


Being debt-free sooner than expected is everyone’s dream. But financing that dream can be easier said than done.

If you’re currently meeting your monthly instalments but struggling to pull some extra pennies together to speed up the repayment process, then hopefully these six creative ideas will inspire you!

1) Sell your spare space

If you’ve got a room that’s not being put to use, now’s the time to put an end to all that wasted floor space by renting it out. Your first port of call might be seeing if any friends or friends of friends are looking for a place to live, but if those efforts are fruitless, there are plenty of other avenues to explore.

Spareroom, RoomBuddies, Gumtree and Rooms for Let are just a handful of sites that can help to partner you with a compatible housemate.

Another worth mentioning is Airbnb. With them, you can either let a spare room or put your whole property up for hire if you know you’ll be out of town. Remember to check with your mortgage provider or landlord before you do this!

2) Look after your pennies

As the good old saying goes, “look after your pennies and the pounds will look after themselves”.

Monzo has created a new savings notion called ‘Coin Jar’. In a nutshell, when you make any purchases over £1 on their card, it rounds the purchase up to the nearest £1 and puts the spare change into a separate coin jar.

So, for example, if you spend £6.59 on lunch out, it’d put 41p into your coin jar. It might not sound like much, but it quickly adds up and people have ended up with £100s in their side pot.

It’s not ‘extra’ money as such, but it ensures your spare change is being tracked and put to good use.

3) Don’t always pay the price you see

We all know that person that bags amazing deals by pulling a company up on their price, threatening to take their custom elsewhere, or just simply haggling. Be that person!

Take your car insurancephone or utility bills for example. If you’ve been with your provider for a long time and your contract is up for renewal, negotiate the price you’re paying. Let them know you’re thinking about going elsewhere, and if you’ve got cheaper quotes to give your haggle a little oomph, drop that into the conversation too.

More often than not, they’d rather give you a reduced rate than lose you to a competitor. And even if they don’t, what’s the worst that can happen by asking the question?!

Remember, if you don’t ask, you don’t get...

4) Call it evens

If you’re not precious about receiving Christmas or birthday presents (after all, it can’t be all take and no give!), see if your family and friends are happy to call the gift-giving quits - it doesn’t have to be forever, but just until your loan’s paid off.

Then, set the money aside that you would have spent on presents and put it towards clearing your loan off early.

If you’re not prepared to go full throttle and scrap the gifts full stop, meet in the middle and decide on a strict and slim budget to stick to, and put the difference in your loan repayment pot.

5) Sell your stuff

“One man’s junk is another man’s treasure”.

Nowadays, you’re spoilt for choice when it comes to making money off old or redundant items. There are the obvious, like eBay, Amazon and Gumtree, but there are a whole load others too, like:

Website

Categories

Decluttr

CDs, DVDs, video games, gaming systems, textbooks, smartphones, Apple products, Kindles, Lego sets.

Poshmark

Women’s clothing, men’s clothing, kid’s clothing, make-up, shoes, handbags, jewellery, accessories.

5miles

Cars, furniture, phones, household items, women’s clothing and shoes, electronics and computers, baby and kids, auto parts, jewellery and watches, sports and outdoors, collectables and art.

OfferUp

Antiques, appliances, arts and crafts, cars and trucks, auto parts, baby and kids, beauty and health, CDs, DVDs, phones, clothing and shoes, furniture, games, toys, household items.

Depop

Mostly clothing and accessories, but you’re not limited to specific categories.

Shpock

Fashion, accessories, home and garden, electronics, baby and child, sports, leisure, games, movies, books, music, cars, and motors.

That’s just the tip of the iceberg, but hopefully, it’s given you some food for thought for when you next come across something you’re looking to chuck.

6) Get active

Petrol’s expensive. Diesel’s expensive. Public transport’s expensive. But you’ve got to get around, right? Well, why not kill two birds with one stone by getting active while saving money?

Admittedly this one will depend on where you live, but if your commute’s not too bad or your friends don’t live too far away, ditch the car, bus, train or taxi, and start walking or cycling from A to B instead.

Then, work out how much you would have normally spent each week or month on fuel or transport fares, put it to one side, and use it to contribute towards your loan.

If you’ve got any tried, tested and alternative ways to pay off a loan, then we’d love to hear them! Get social and share them with us on Twitter or Facebook.

Disclaimer: All information and links are correct at the time of publishing.

author: Bryony Pearce

By Bryony Pearce

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Creative ways to pay off a loan Creative ways to pay off a loan