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For this post, we’ve teamed up with our partners at Fairstone

When you’re in a financial bind, the last thing you need is another high payment weighing you down. Choosing the right loan type, payment frequency, and term can lower your loan payments, ensuring you stay on track with debt repayment.

Our partners at Fairstone shared 6 ways to make loan payments more affordable:

1. Consolidate Your Debt

If you have multiple balances (credit cards, loans or financing plans), you could save on interest charges and simplify your payment schedule by combining your bills into a single debt consolidation loan. Debt consolidation loans can result in lower, more manageable payments at a fixed interest rate over the duration of your loan term. With budget-friendly loan payments, you’ll be more likely to stay on track with your balance and avoid missed payments. Missed credit card payments can sometimes result in an increased interest rate, making it even harder to get out of debt. If you’re in the habit of paying only your minimum payment each month or missing credit card payments entirely, debt consolidation may be the right solution for you.

2. Choose Your Loan Product Wisely

Choosing the right loan product can result in savings depending on your financial goals. If you’re a homeowner, a secured personal loan or home equity loan (backed by the value of your house) may be your best borrowing option. Homeowners can access lower loan payments through a combination of a lower interest rate and a longer loan term. Learn why many borrowers who own a home choose a secured personal loan.

Not a homeowner? An unsecured personal loan from Fairstone doesn’t require you to own a home to borrow money – keep reading to learn how to lower loan payments on an unsecured personal loan.

Tip: When choosing your loan product, be sure to ask about pre-payment penalties. Choosing a loan with no pre-payment penalties is a better option for borrowers who want the flexibility of paying off their loan early.

3. Choose A Payment Frequency That Saves You Money

Most lenders offer multiple payment frequency options to choose from. The three most common payment frequencies are bi-weekly, semi-monthly and monthly. While many borrowers choose payment frequency based on convenience, it’s important to understand how frequency affects interest charges.

  • Bi-weekly payments (every two weeks) are calculated by dividing the monthly amount in two and are paid every two weeks. With a bi-weekly payment schedule, you make two extra payments a year which reduces your interest charges.
  • Semi-monthly payments (twice a month) are calculated by dividing the monthly amount in two and are paid twice a month. Semi-monthly payments offer a more predictable schedule than bi-weekly payments because you make the same number of payments each month – whereas with bi-weekly payments you’ll make three payments a month two months a year.
  • Monthly payments (once a month) are due once a month and are ideal if you benefit from paying your bills at the same time each month or if you’re paid once a month. 
Tip: Set up automated payments to come out of your account on a day that’s convenient for you. Automated payments will help you stay on track and avoid late or missed payments.

4. Choose A Longer Loan Term

When establishing a loan agreement with your lender, you’ll be required to choose a loan term (the amount of time you take to pay off your loan). Generally, secured personal loans offer longer loan terms, enabling you to spread out payments over a longer period of time. Choosing a longer loan term will reduce your loan payment – giving you added room in your budget. However, a longer loan term means you’ll incur more interest charges over time.

5. Make Extra Loan Payments When Possible

Any lump-sum payments go directly toward the principal of your loan balance, meaning you’ll pay less interest overall and may even pay your loan off early. While extra payments won’t lower your regular payments, they can reduce the amount of interest you’ll pay on your loan.

6. Avoid Late Payments

Late payments collect interest until they are paid and can negatively impact your credit rating. If you anticipate late or missed payments, contact your lender to discuss your options. Your lender may allow you to make a partial payment or defer your loan payment. If you proceed with one of these options, the amount you owe will still need to be paid at the end of your loan term or deferral period.

By understanding how all these factors impact your loan, you can reduce borrowing costs and save money, so you can pay off debt faster.

Looking for some extra room in your budget? You could get a loan up to $50,000 from Fairstone – and now’s the perfect time. Take out a Fairstone loan between May 6-31 and you won’t have to make a loan payment until summer.* Take advantage of this offer to consolidate debt, cover unexpected expenses and more. Go to and get a loan quote to find out how much money you could qualify for and what your payments might be. No obligation and no impact to your credit score.

*No payments until summer applies only to loans booked on or after May 17, 2021, in Quebec – a 35-day payment deferral offer – and on or after May 6, 2021, in the rest of Canada – a 45-day payment deferral offer. Summer begins June 20, 2021. Interest begins to accrue from the date the loan is booked at the interest rate disclosed in the loan and is not waived.

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Fairstone Financial is a leading alternative lender in Canada, they have been helping Canadians since 1923. Their mission is to provide Canadians, with fair to good credit, with an affordable alternative to payday loans.

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