New research from ING shows that while millennials have an inclination towards accumulating debt, they’re more serious about paying it off than many would believe.
More than half (55 per cent) of millennials thinking about taking out a personal loan said that being able to pay off a loan early was a major consideration.
Further, 60 per cent of millennials believe that the ability to make extra repayments on personal loans was “important to them”, and 58 per cent of millennials who currently have personal loans are currently making additional repayments.
If millennials have a large appetite for debt, taking out a personal loan that allows for additional repayments with no fees is one way to stay on top of this.
Tip – look for loans with extra repayments feature
Making extra loan repayments on top of your regular repayments can help borrowers to pay their debt more quickly. As these millennials reduce the amount they owe, they’ll also be reducing the amount of interest that is calculated on their outstanding balance.
This research coincides with the development of ING’s new Personal Loan, which was designed specifically to help millennials “pay off their loans as quickly as possible”, through waived ongoing and early repayment fees.
ING’s head of retail banking, Melanie Evans, believes this research shows us that “millennials are taking a very considered approach to debt management”.
“For larger purchases and outlays they’re really thinking about their funding options and sensibly looking at ways to pay off the debt as quickly as possible,” she said.