Each of your payments contains an amount for principal and interest. It is perfectly fine to pay MORE than the minimum payment, but you can't pay less and specify that it is for the principal only. Adding even $25 month extra will knock the debt down early since the $25 goes toward the principal. The more extra you pay per month, the faster that car is paid off.
can you please email me your excel spreadsheet at [email address removed]
Thank you so much!
How do i private message, I did a preview and it still blocks out my email
email is [email address removed]
@bdavis404 Please return to your post and go to the three little blue dots on the upper right so that you can edit out your email address. This is a public web site that can be seen by everyone. Do you want to receive emails and contacts from scammers and identity thieves pretending to be from TurboTax?
Steven, you can pay more on your auto loan and the more you pay the sooner your vehicle is paid off and less interest you pay. I have a loan on my vehicle and I pay more then my payments t is and the loan payment is paid for the amount it is and anything extra goes to principle. I don't know who you get your loans through but every loan I have had even for my mortgage was the same way. Anything paid extra went to principle to lower the interest on the loan. You must be dealing with some crocked loan companies if they are doing that to you or if that is what you think as I have never taken a loan to the end of the term as I have paid it off sooner then they have given me the loan for and paid less interest with no penalties....
No to your intital answer.
However, I have had the same problem, except my payments were $495.33 with a 1.9% APR, 72 month loan. Tell me why I have paid over $6000.00 on a car, making more than the monthly payment and have only paid $2000.00 on my whole loan. I have a lawyer on this case, but im pretty sure the finance company isn't following the armortized schedule and more. I cant figure out where they have applied the money towards.
Read the contract carefully ... there may have been other fine print or nuances that have come into play ... like you were late on just one payment or that the loan is being computed at a higher rate however if you make all your payments on time during the loan period then the unpaid balance is forgiven making the overall rate the lower expected amount.
Another helpful trick, interest is accrued daily, so paying your note 2-3 weeks in advance will reduce the overall interest your paying on the bill monthly and the daily accrued amount will only start after that bill cycle is past (i.e. Car Note due on Feb 28th , make the payment on Feb 14th, you save on 14 days of interest and the interest doesn't start adding back up until Feb. 29th (since its a leap year)) 😉