Today's financial term of the day is Accelerated Payments. This refers to the additional payments made on a loan that is not part of a payment schedule. These payments could be made at either predetermined or random intervals. By making unscheduled payments, one can effectively reduce the principal balance of the loan. What this ultimately means is that one essentially pays more of the principal and less interest is paid off in subsequent payments to the loan. Using this tactic could mean the early pay off of the loan.
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