You should save on interest when paying off a short-term loan before it’s due. Credit cards generally have a grace period where no interest is calculated on purchases. Of course, be aware that if you take a cash advance on your card, interest starts to add up immediately. In regards to payday loans, in most provinces, providers are usually not allowed to penalize you for paying off the loan before it’s due. If a personal or installment loan is considered open-end or flexible, then there shouldn’t be a penalty for making any early payments. Fixed-term or closed-end contracts, however, will likely have such penalties. Consult with your provider to determine which loan type you have.