Need Help-Car Related

[SSH0126]

Okay so I am trying to pay a car off in about 24 months. I have a very high intrest rate and turning it in is not an option. I owe 18k on it and my payments are 510 per month. The lender does not allow me to pay towards the principal until I have paid 3months in advance. How can I do this? 

Would  I have to make 2payments per month in order to stay 3months ahead so that I can have the extra money be applied to the principal? 

Say I sent in 4 payments all they would do is show that I am paid up thru November 2012 which does not help at all. 

Please be kind and thanks for the explanations and assistance in advance. 

[SSH0126]

noone?

[Anonymous]

How old is this loan???

[SSH0126]

3 yrs old in Jan and refinacing is not an option right now my credit is not better..I know that it is bad as far as intrest rate and etc. I just want to pay the car off

[apandabear]

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@SSH0126 wrote:

Say I sent in 4 payments all they would do is show that I am paid up thru November 2012 which does not help at all. 

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The way I see it, it actually does help. Pay up through November. Then keep sending them money. And more money. As much as you can afford. Eventually, you will pay the loan off. And early. 

If you get 3 months ahead now, and then send in one payment every month, you will stay ahead 3 months. And that should let you finish your loan 3 months early.

Let's say you have 2 years left on the loan. If you send in 2 payments per month, you should finish that loan in 12 months. 

Please make sure you read the fine print on the loan and make sure you won't be charged a penalty for paying it off early. And figure out how your interest is calculated. That would help us answer your questions.

[SSH0126]

Okay pp what I meant was just sending in extra payments when the under the three months will not help me considering the loan is due to be done in 2016. I can not  and will not continue to pay all that intrest. 

I think what I may do is send in the 3months and then every month after that send in two payments with one stating to go towards the principal only on the check. 

[JohnPTEX]

I would pay the three months in advance as quickly as possible and then just put every dollar you can muster into paying the principle down each month - it sounds as if this was a 86 month term??  Chances are that you are still paying way more interest than principle - once you have the three months in advance paid and are making the regualr monthly payments, I would go online and use some/any website to create an amortzation schedule to see what amount of principle paid each month is the best situation for you

Just my two cents

[SSH0126]

From what it looks like online. Nothing is going to my pricipal( high intrest rate). The maturity date is :07/23/2016..

On my statement is shows the payment of 509.43 and intrest accrued of $246.38 and estimated pay off pf $17,757.25

Can anyone help me decifer..Ugh I feel sooo dumb!!! 

[JohnPTEX]

Give us the exact terms of the loan - payment start date, interest, terms, etc.