There are times in life when circumstances put us in a financial pinch and lead us to take out a personal loan. It could be a medical emergency, family crisis, or to consolidate debt. If, however, your situation improves and you find yourself with some extra cash available, you might be thinking about paying off the debt earlier. Lenders such as Upstart, Avant and Prosper charge no extra fees for early repayment of loans. However, not all loan companies allow early repayment, so check if your lender charges a penalty fee to end a loan early.
If you are weighing this decision, here are three reasons why settling your loan early is in your favor.