Enrolling in automatic payments can lower your interest rate, depending your lender. While it may only be small amount, that fraction of a percentage point can really add up over time. For example, Sallie Mae offers a 0.25 percentage point reduction of a loan’s interest if you qualify for auto-debit. But even if you won’t get a break, automating your payment can eliminate the possibility of late fees and missed payments, which only add to the debt pile.
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