See all articles

‘Tis the Season to Get Your Finances in Order: Tips for Paying Off Loans Faster and Reducing Interest Before Christmas

The holiday season is a time for joy, celebration, and togetherness. However, it often comes with a financial strain, especially if you have existing loans. The good news is that with careful planning and smart financial strategies, you can get your finances in order before Christmas, allowing you to enjoy the festivities without the burden of debt looming over you. In this article, we will explore effective tips for paying off loans faster and reducing interest, ensuring you have a financially stress-free holiday season.

  1. Create a Budget

    Start by creating a realistic budget for your holiday expenses. Account for gifts, decorations, travel, and entertainment. Having a clear understanding of your financial commitments will help you allocate funds effectively and avoid unnecessary expenditures.

  2. Prioritise High-Interest Debts

    Identify the loans with the highest interest rates (and/or non-tax-deductible debt) and focus on paying them off first. By tackling high-interest debts, you minimise the overall interest you’ll pay, allowing you to save money in the long run. Consider consolidating high-interest debts into a lower-interest option if available, streamlining your payments and reducing the interest burden.

  3. Make Extra Payments

    One of the most effective ways to pay off loans faster is by making extra payments whenever possible. Allocate any unexpected windfalls, like tax refunds or work bonuses, towards your loans. Additionally, consider making fortnightly (or weekly) repayments instead of monthly ones, which results in an extra payment annually, reducing the principal amount faster.

  4. Round Up Payments:

    Rounding up your loan payments to the nearest hundred or even fifty dollars can make a significant difference over time. While it might seem like a small amount, these extra dollars add up and directly reduce the principal balance, helping you pay off the loan faster.

  5. Refinance Your Loans

    Contact Stanley Finance to investigate your refinancing options and find out if we can secure you a lower interest rate. Refinancing can lead to substantial savings over the life of the loan, making your monthly payments more manageable and allowing you to pay off the debt more quickly.

  6. Negotiate with Lenders

    At Stanley Finance, we renegotiate your variable interest rates at least annually. This has saved our clients thousands of dollars annually on interest savings. If you think you’re paying too much, give us a call.

  7. Avoid New Debts

    As tempting as it may be, refrain from accumulating new debts, especially during the holiday season. Avoid using credit cards for non-essential purchases, and opt for cash or debit cards instead. This prevents adding to your existing financial burden and allows you to focus on paying off existing loans.


Getting your finances in order for Christmas is not only achievable but also empowering. By following these tips and being proactive about your financial situation, you can pay off loans faster, reduce interest payments, and enjoy the holiday season with peace of mind. Remember, a little financial discipline now can lead to a debt-free, stress-free holiday season and set a positive tone for the upcoming year. Happy holidays and happy saving!