Principle Payments

[Anonymous]

Hi!

I just purchased the Platinum Fico Kit, and I found it to be a very good resource. Thankfully, I have been able to pay off all my credit cards except one with a balance of less than $2,000. I do, however, have a student loan, recent, from graduate school, and a car loan. Because of my FICO score, the interest rate on my car loan is astronomical. I just signed a 6 figure job offer, and I want to invest as much as I can into paying off this car loan. In what increments do I send in a principle only payment? How much do I send? Please help.

[annah618]

It all depends on what you can afford to pay. We don't know your budget or how much the loan is, so we can't give you a dollar figure.

Just make sure that when you do send in a principal payment you let them know it should be applied to the principal, not to your next payment. And let them know you do not want to advance your next payment date. You have to tell them that or else they won't apply it to your principal and they'll advance your next payment.

[Anonymous]

The loan was for $24,500, after 2 years of paying $535.98/month, the balance is just down to $19,000. I can now afford to send an extra $535.98/month to be applied directly to principal. Would this decrease the amount of time of this loan if I start sending the extra $535.98/month? I want relief from this debt and this high interest rate. Thanks.

[sl]

Yes, anytime you pay extra on a loan/installment and put the extra to principle, it will decrease the loan period.

[Anonymous]

www.bankrate.com has a good auto loan calculater that will let you enter additional principal and it will tell you the consequences.

[Anonymous]

Thanks.