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3 Ideas For How You Can Climb Out Of Debt Easier

Paying off a merchant cash advance is fairly simple. How can we make such a bold statement? Well, let’s consider the way that the repayment process works. When a merchant processes a sale that is paid for with either credit card or debit card, a small percentage of that sale goes towards paying back the advance. It’s an automatic process. No cheques are cut, no balances are transferred and no worry is necessary!

With a bank loan, the repayment process is a lot different. Borrowers are expected to make minimum monthly payments that are based on a very strict schedule. Unfortunately, this regimented schedule is not one that every Canadian business owner is able to adhere to very easily. Especially during one’s slow seasons, it’s tough to make payments on time. Even for those who can make those payments on time, getting out of debt isn’t so easy.

Here are three ideas for how you can climb out of debt easier:

1. Make more payments within any given month. Some borrowers choose to make bi-weekly payments so as to ensure the quicker reduction of their debt. The key is to reduce as much of the principal balance as possible. Keep in mind that each payment made towards the debt pays off the interest charges first. By making more than one payment within a month, you will ensure that your interest is paid and that more money is going towards the principal.

This is a practice that is encouraged by Carrie Smith of The Huffington Post. She writes that submitting payments to your lender every two weeks instead of once a month will accomplish a number of things include accumulating less interest, making an extra payment each year and shaving off several months of the repayment process. “Make sure to discuss this with your lender before making bi-weekly payments, because you might be penalized for any extra payments or paying off the loan balance early,” she warns.

2. Pay more than the minimum due. Remember that your minimum payments each month are usually just enough to cover the interest charges. If you’re only paying the minimum – no matter what type of debt you’re trying to escape – you’re bound to be making payments forever! And we’re not joking. When you do the math for most loans, it would take decades before any of them are paid off in full with just minimum monthly payments being made.

Smith suggests that the least you could do is round up your payments to the nearest hundred dollar amount. “Rounding up your payments is an effortless way to pay extra without even missing the funds,” she explains, “For instance, my auto payment was $264.12, but I chose to round it up to $300, which is an extra $35.88 per month. After 12 months that’s an extra $430.56 (or almost two additional payments).”

3. Make an additional payment when possible. When you’re in debt, your top priority should be to find ways to climb out of it as quickly as you can. And that means making payments when you get any extra money coming your way. There’s no reason to hang on to it as you’re accruing interest on your loan. The quicker you pay it off, the less you will have paid in total when it’s all said and done. Do your best to make an extra payment when the money is available.

“Use money from a tax refund or bonus from work to help pay down your loan faster,” suggests Smith, “Or you can divide your monthly payment by 12 and add this amount to all future payments. For example, with my car payment I can divide $264.12 by 12 months and add $22.01 to each payment. Each payment would be increased to $286.13 equaling one extra payment per year.”

Isn’t it great that you never have to worry about any of the above mentioned suggestions when it comes to paying back a merchant cash advance? For more information about Synergy Merchants’ merchant cash advance program or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026 or email us at

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