Pay Off Auto Quickly

[cdub69]

I just got an auto loan at 18%.I would like to pay it off as quickly as possible because of the high interest.Should I make bi-weekly payments or pay extra on the principle?My payments are $400.00

[Anonymous]

Yes that is extortion rate interest.... I would make a payment of $600.00 a month and you will start to dent your loan balance depending on your income. If this were me paying this down I would be very agressive like $750.00 a month aggressive, becasue basically you will be paying for another vehicle based upon the amount of interest you have to pay over the life of your loan which is probably 60 months or more.

[Jazzzy]

Ask your lender what the best way is to pay extra principal on the loan.

[nathan]

If there is no prepayment penalty, it always makes sense to pay it off quickly and save some $$$

[MarineVietVet]

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@nathan wrote:

If there is no prepayment penalty, it always makes sense to pay it off quickly and save some $$$

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+1

I'm always for trying to pay off debt as quickly as possible.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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[Anonymous]

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@nathan wrote:

If there is no prepayment penalty, it always makes sense to pay it off quickly and save some $$$

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Even if there's a prepayment penalty, it's probably worth it to incur the prepayment penalty, or pay the loan down to almost nothing (like $100) and let it sit til the loan is done.