Best Egg Loan Deposit Timeline Explained

Quick answer

• Best Egg loan funding typically takes 1 to 3 business days after your loan is approved and you’ve e-signed your loan agreement.
• The exact timeline can depend on your bank and the time of day you complete the final steps.
• You’ll receive an email notification once your loan is funded.
• Funds are usually deposited directly into your linked bank account.
• Be aware that weekends and holidays can extend the funding timeline.
• Review Best Egg’s specific terms for any unique circumstances that might affect deposit speed.

What to check first (before you choose a payoff plan)

Before diving into how to pay off debt, it’s crucial to understand your current financial landscape. This foundational knowledge will inform your strategy and prevent missteps.

Balance and rate list

Gather all your outstanding debts. For each, note the total balance owed and the Annual Percentage Rate (APR). This includes credit cards, personal loans, and any other forms of debt you’re managing. Knowing these figures is the first step to prioritizing which debts to tackle first.

Minimum payments

Identify the minimum monthly payment required for each debt. While the goal is to pay more than the minimum, understanding these baseline figures is essential for budgeting and ensuring you don’t fall behind on any accounts. Missing minimum payments can lead to significant financial penalties.

Fees or penalties

Investigate any potential fees or penalties associated with your debts. This could include late fees, over-limit fees on credit cards, or prepayment penalties on loans. Understanding these can help you avoid unexpected costs and make informed decisions about your payoff strategy.

Credit impact

Consider how different payoff strategies might affect your credit score. Making on-time payments generally improves your score, but opening new accounts (like for consolidation) or closing old ones can have short-term impacts. Monitor your credit report regularly.

Cash flow stability

Assess your current monthly income and expenses. Ensure you have a stable cash flow that can accommodate extra debt payments without jeopardizing your essential living expenses. Building a small emergency fund, even while paying off debt, is often recommended for unexpected needs.

Payoff plan (step-by-step)

Creating and executing a debt payoff plan requires discipline and a clear strategy. Follow these steps to systematically reduce and eliminate your debt.

Step 1: Assess your total debt

• What to do: List all your debts, including the creditor, current balance, interest rate (APR), and minimum monthly payment.
• What “good” looks like: You have a comprehensive and accurate spreadsheet or list detailing every debt.
• A common mistake and how to avoid it: Forgetting about small debts or store credit cards. Avoid this by reviewing bank statements and credit reports diligently.

Step 2: Determine your available debt payment amount

• What to do: Calculate how much extra money you can realistically allocate to debt repayment each month beyond your minimum payments.
• What “good” looks like: You’ve created a realistic budget and identified a consistent amount to put towards debt.
• A common mistake and how to avoid it: Overestimating how much you can pay, leading to burnout or missed payments. Avoid this by being conservative and building in a small buffer.

Step 3: Choose your payoff strategy

• What to do: Decide between the debt snowball (paying smallest balances first) or debt avalanche (paying highest interest rates first) method.
• What “good” looks like: You’ve selected a method that aligns with your personality and financial goals.
• A common mistake and how to avoid it: Not committing to a strategy or switching too often. Avoid this by choosing one and sticking with it for at least a few months.

Step 4: Make minimum payments on all debts

• What to do: Ensure all your minimum payments are made on time for every debt, except for the one you’re targeting.
• What “good” looks like: No late fees or dings on your credit report from missed minimum payments.
• A common mistake and how to avoid it: Missing a minimum payment on a non-targeted debt. Avoid this by setting up automatic payments for all but your primary target debt.

Step 5: Attack your primary debt

• What to do: Apply your determined extra payment amount to the debt you’ve chosen to tackle first based on your strategy (smallest balance or highest APR).
• What “good” looks like: You’re consistently paying more than the minimum on your target debt.
• A common mistake and how to avoid it: Not applying the full extra payment amount. Avoid this by transferring the extra funds immediately after your main bills are paid.

Step 6: Track your progress

• What to do: Regularly update your debt list with new balances as you make payments.
• What “good” looks like: You can see tangible reductions in your debt balances.
• A common mistake and how to avoid it: Not tracking progress, which can lead to demotivation. Avoid this by updating your list weekly or bi-weekly.

Step 7: Celebrate small wins

• What to do: Acknowledge and celebrate when you pay off a debt or reach a significant balance reduction milestone.
• What “good” looks like: You feel motivated and encouraged to continue your efforts.
• A common mistake and how to avoid it: Waiting until all debt is gone to feel any sense of accomplishment. Avoid this by setting smaller, achievable celebration points.

Step 8: Reallocate payments

• What to do: Once a debt is paid off, add its minimum payment plus the extra amount you were paying towards it to the next debt in your chosen payoff order.
• What “good” looks like: Your debt repayment accelerates as you pay off more accounts.
• A common mistake and how to avoid it: Spending the money freed up from a paid-off debt instead of reallocating it. Avoid this by immediately adjusting your budget and payment automation.

Step 9: Stay vigilant and adjust

• What to do: Periodically review your budget and income to ensure you can maintain your payment schedule. Adjust your plan if your financial situation changes.
• What “good” looks like: Your payoff plan remains sustainable and effective.
• A common mistake and how to avoid it: Becoming complacent or ignoring unexpected financial changes. Avoid this by scheduling regular financial check-ins.

Options and trade-offs

When tackling debt, several strategies can accelerate your progress, each with its own advantages and disadvantages.

• Debt Snowball: This method involves paying off debts from smallest balance to largest, regardless of interest rate. It’s psychologically rewarding as you achieve quick wins, which can boost motivation. This is ideal for those who need frequent positive reinforcement to stay on track.
• Debt Avalanche: This strategy prioritizes paying off debts with the highest interest rates first, while making minimum payments on others. It saves you the most money on interest over time. This is best for disciplined individuals focused on long-term financial efficiency.
• Debt Consolidation Loan: You take out a new loan to pay off multiple existing debts, leaving you with a single monthly payment. This can simplify your finances and potentially lower your interest rate. It’s a good option if you can secure a loan with a lower APR than your current average.
• Balance Transfer Credit Card: You move balances from high-interest credit cards to a new card with a 0% introductory APR period. This allows you to pay down principal interest-free for a limited time. This works well for credit card debt if you can pay off the transferred balance before the promotional period ends.
• Debt Management Plan (DMP): Offered by non-profit credit counseling agencies, a DMP consolidates your debts into one monthly payment, often with reduced interest rates. The agency works with creditors on your behalf. This is suitable for those struggling to manage multiple payments and needing structured guidance.
• Debt Settlement: You negotiate with creditors to pay a lump sum that is less than the full amount owed. This can significantly reduce your debt but has severe negative impacts on your credit score. This is typically a last resort for those facing overwhelming debt who can afford a lump-sum payment.
• Increasing Income: Taking on a side hustle, asking for a raise, or selling unused items can provide extra funds to accelerate debt repayment. This is a proactive approach that directly increases your capacity to pay down debt faster.
• Reducing Expenses: Cutting back on non-essential spending, such as dining out, entertainment, or subscriptions, frees up money to put towards debt. This requires diligent budgeting and a willingness to make lifestyle adjustments.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes