Title: Why Pay off Loans Early? Savings and Peace of Mind
Headings: 
Why Pay Off Loans Early?
Benefits of Reducing Debt
Save Money
Improve Financial Strength
Peace of Mind
When to Not Pay Early
How to Do It
Article Sources

Content: Why Pay off Loans Early? Savings and Peace of Mind
The Balance Loans
Part of
How Does Loan Amortization Work? What Is Amortization? How a Fixed-Rate Loan Works
Understanding Loan Payment Calculations
Loan Amortization Calculator
How to Pay Off a Loan Early & Why to Do It
Why Pay Off Loans Early? Benefits of Reducing Debt
•••
Jan Stromme / Stone / Getty Images
By
Full Bio
Follow Twitter
Justin Pritchard, CFP, is a fee-only advisor and an expert on banking. He covers banking basics, checking, saving, loans, and mortgages. He has an MBA from the University of Colorado, and has worked for credit unions and large financial firms, in addition to writing about personal finance for nearly two decades. Read The Balance's editorial policies
Justin Pritchard
Reviewed by
Full Bio
Follow
LinkedIn with Background
Linkedin
Follow Twitter
Marguerita is a Certified Financial Planner® who helps people meet their life goals through the proper management of financial resources. She specializes in divorce, death, career changes, and caring for aging relatives. Article Reviewed on August 28, 2020
Read The Balance's Financial Review Board
Marguerita Cheng
Updated August 28, 2020
When you have extra money available, paying off debt often is a good choice.