I want to pay off my auto loan?
Loki asked:
My auto loan has about 5k and change left. I had no credit, nor a co-signer, so I had to bite the bullet of a high interest rate. 14% to be exact. High, I know. However, I want to pay this off by September buy sending in $1000 every 2 weeks. This is possible, but I need to know how this interest is applied. I don’t want to send in 1k and have it all go to interest. I believe the interest was precalculated, so how would this work? Paying 1k until September will leave me with a few payments, but I at least wanna have 12 payments made before I pay it off. Going back to school, so I will need the extra $230 a month, which is what I pay monthly. Any help would be greatly appreciated. Thanks.
Juan
My auto loan has about 5k and change left. I had no credit, nor a co-signer, so I had to bite the bullet of a high interest rate. 14% to be exact. High, I know. However, I want to pay this off by September buy sending in $1000 every 2 weeks. This is possible, but I need to know how this interest is applied. I don’t want to send in 1k and have it all go to interest. I believe the interest was precalculated, so how would this work? Paying 1k until September will leave me with a few payments, but I at least wanna have 12 payments made before I pay it off. Going back to school, so I will need the extra $230 a month, which is what I pay monthly. Any help would be greatly appreciated. Thanks.
Juan