Saving money on car loans
By Gadget23mom on March 18, 2014
I'm not sure that most people are aware, but paying a monthly installment on a car loan is doing it the hard way. As you know, some months of the year have 5 weeks versus the usual 4 weeks. Now if you were to pay that same car payment (broken up, not total), on a weekly basis, imagine the amount of interest you would save over the length of that loan. For example, lets use $400 as the amount of the monthly installment, but let's break it down into equal payments of $100 a week. Here is the catch: You keep paying $100 EVERY week, no skips, even when the month has 5 weeks in it. See the idea behind this? The amount of interest you will be paying keeps dropping.
Now some loans depending on where you obtain them may not allow you to pay on a weekly basis. I went through a credit union and they accepted my proposal on how I wanted to pay down my loan because they are not a bank. A credit union is there to help save you money, not make money off of you. Perhaps you are not a member of a credit union, so investigate them and see if you can find one that will allow you to become a member and that will also allow you to pay off a car loan in this manner.
Some may be thinking that the amount of money saved may not be worth the trouble, but for me every penny saved can go elsewhere for other bills, trips, whatever.
For those of you who have done this before, you know what I'm talking about. Those of you who have never tried it should consider it. I never knew this could be done until I was well into my fifth car loan, but as a single mom, and money being tight, I read up, investigated, and tried it out. It worked for me, it can work for you.
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