According to LendingTree, Americans owe $257 billion in personal loan debt as of the second quarter of 2025.

And while paying off a personal loan can sometimes feel like it’s going to take forever, it doesn’t have to. With a few smart moves, you can speed up the process, cut down on interest and enjoy the sweet relief of being debt-free sooner.

Be Aware: The One Loan That’s Almost Guaranteed To Deliver Financial Disaster

Read Next: How Much Money Is Needed To Be Considered Middle Class in Your State?

Whether you are tired of seeing that balance hang over your head, are motivated to reach a financial goal or just want some extra breathing room in your budget, there are plenty of practical (and surprisingly doable) ways to pay off your loan faster.

According to Kevin Thomas, CFA, founder of Omniga, one sensible but frequently ignored strategy to pay off a personal loan faster is to change when you make your installments.

“If you time your payments to when your income actually goes into your account, you are less likely to spend that money on something else,” Thomas said.

He explained that this minor change makes it easier to stick to your plan and use additional money to pay off your balance.

Explore More: What Can I Use a Personal Loan For? Common Uses and Smart Tips

Setting up automatic payments for as little as $25 or $50 will ensure you keep making progress, even if you don’t have the willpower to do it yourself.

Thomas noted that most individuals don’t realize how quickly those extra sums pile up, and automation takes away the incentive to skip a month.

“Many borrowers are surprised when they add up unused or barely used services, which often total $60 to $100 a month,” Thomas said.

Redirecting that money directly toward your loan balance not only saves interest but also helps you clear the debt with money you won’t really miss.

When you commit all earnings from a short-term gig or freelance project toward your loan, the impact is immediate.

According to Thomas, earning just $300 extra per month and applying it exclusively to the principal can take years off your repayment schedule without forcing you to cut deeper into your main budget.

Thomas said it also helps to change the way you think about the money you save on interest. “When you pay off a debt with a 9% interest rate, it’s like getting a guaranteed 9% return on your money,” he explained.

Changing your focus from “getting rid of debt” to “building wealth” might make the process more motivating.

Lastly, Thomas recommended thinking about refinancing once your credit score goes up. “A lot of people think they have to stick with their original rate, but even a 2% drop on a $20,000 loan can save them hundreds of dollars a year,” he said.

Using better credit terms can cut the length of the loan by a lot and lower the overall amount of interest paid.

More From GOBankingRates

Here's What It Costs To Charge a Tesla Monthly vs. Using Gas for a Nissan Altima 

Why You Should Start Investing Now (Even If You Only Have $10) 

10 Unreliable SUVs To Stay Away From Buying 

10 Used Cars That Will Last Longer Than the Average New Vehicle 

This article originally appeared on GOBankingRates.com: How To Pay Off a Personal Loan Faster and Save on Interest