Let's talk about a strategy for loan repayment: shorter years or lower monthly payments? In the early repayment of the loan, there are two options, with advantages for reducing the number of years and the amount. If we were concerned with interest savings, it would be more advantageous to reduce the number of years spent on early repayment. But it's also cloudy. If, for example, you have paid more than half of the principal loan, then the principal of the monthly repayment exceeds interest. At this time, the reduction in the number of years is no longer significant. A reduction in the amount of repayment would be more appropriate if you wished to pay in advance。

Would it change the interest rate for a reduction in the repayment period

The reduction of repayment amounts is better than the reduction of years when economic pressure is considered on a monthly basis. In the event of income instability, the age of cropping may increase pressure. In the event of unemployment, the only way to repay it is through borrowing. Concern was expressed about changes in interest rates during repayment periods. In fact, the duration of the loan and interest rates are in positive proportion. Interest rates are low when the age limit is short. As a result, interest rates change when short-term repayments are selected. However, if financial resources are limited and repayment pressure is high, the repayment period should not be shortened. Consideration could be given to reducing monthly contributions and keeping the remaining years to reduce pressure。

In general, there is no single answer to the question of “a shorter period of time or a reduced amount”, the advantages and disadvantages of which need to be determined according to their own situation. Thanks for reading。