00:00if you're in a good place financially and only have a little bit left on your personal loans
00:08it can be tempting to want to clear the balance and move on first things first make sure you're
00:13as financially prepared as you think you are that means checking your budget to make sure you can
00:17still pay off your credit card bills as well as having enough savings set aside in case of a
00:22financial emergency without dipping into your retirement fund that said without taking money
00:27out if you want to allocate the next few months of contributions to pay off the loans that's okay
00:32the biggest thing is that paying off your loans early may actually cost you nerd wallet says few
00:37lenders still charge prepayment fees but you should check but you can do the math to see if that fee is
00:43cheaper than the interest you'd end up paying but letting it play out longer if that's the case
00:47bank rates suggest putting the money in an interest bearing account while you continue paying monthly
00:52and if you decide it's the right move there are all kinds of ways you can shorten the loan period
00:57without paying a lump sum like paying over the minimum each month making loans every other week
01:02instead of once a month or using a lender payment program though those might come with fees
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