What happens to future bills if I pay more than the minimum toward my car loan?

P

pandera p

New Member
I have some "extra" money to go toward bills, but not enough to pay off the car loan completely. If I still owe 8000 on a car loan at 9.9% (my debt with the highest interest rate), and I send them an extra $1000 on top of my monthly payment, does that change the length of the loan or amount of interest I will end up paying? (I have no pre-pay penalties)
 
M

Michelle S

New Member
I believe the extra money would go toward the interest on the loan.., or it would be 1000.00 worth of payments.
 
G

GILMEISTERA

New Member
Any excess that you pay above your monthly minimum payment goes directly to principal with the net effect being you will pay off your loan faster and save a substantial amount of interest
 
You must log in or register to reply here.
Top