payments opinion

Chuck33079 · 01-03-2014, 04:00 PM

Quote:

Originally Posted by Gadgetech

This is called a simple interest loan. You can pay it off at anytime and making any payment over and above the amount due goes to principle.

I've had multiple car loans where any additional amount I paid went toward the next month's payment unless otherwise instructed.

Gadgetech · 01-03-2014, 04:05 PM

Quote:

Originally Posted by Chuck33079

I've had multiple car loans where any additional amount I paid went toward the next month's payment unless otherwise instructed.

Well a lot of times too a leinholder will adjust your payment down due to your extra amount paid reducing the principle owed in an attempt to recapture as much lost interest from an early payoff as possible.

The point is that leinholders are tricky and you have to scrutinize and ask all the questions up front b/c once you have a loan with someone it's not free to change if you don't like something.

Frank Rizzo · 01-06-2014, 11:28 PM

Quote:

Originally Posted by Chuck33079

I've had multiple car loans where any additional amount I paid went toward the next month's payment unless otherwise instructed.

that sounds like a Rule of 78 loan.....

A quick explanation of the "Rule of 78"

.

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