-widen your window of repayment as long as possible by delaying interest charges by spreading payments over a greater period.
-pay higher monthly payments if you have the capability. -keep up with insurance and maintenance requirements so that those costs don't become burdensome in the future.
-add up all available credit to pay off one large expense at a time rather than trying to do it all at once or piece meal payment plans that will just complicate matters with more fees & no way to go back and fix discrepancies.
-download an app like mint.com or cnbc's quicken program for tracking your spending habits, cutting out unnecessary expenses, and planning for upcoming ones (like car repair)
how can i pay off my car faster?
express or implicit interest rate
when you take out a loan, there are two types of interest rates. an “explicit” interest rate is the apr (annual percentage rate) which you pay at the time of your loan application, and an “implicit” interest rate is what you earn on your deposit. adding an implicit account to your car loans means that instead of keeping all deposits after repaying it in full, the bank pays back the original sum plus interest over time.
is it better to pay off a car loan early?
it's better to pay off the automobile loan early because by doing so, will remove the burden of an expensive payment and allow for greater flexibility. the lower payments realized once the loan is paid off are also economically rewarding by allowing more disposable earning power. on behalf of credit union one, i would like to thank you for considering our financial institution for your personal financing needs. if you have any questions please feel free to contact us toll-free at 1-888–8–union1 or email us at info@uniononecredituniononline.com
best regards, david hancock
president & ceo credit union one
member fdic & osfi
member napus (national association of government
will my car payment go down if i pay extra?
yes. the rate of interest you are paying on your car loan will gradually decrease as they accumulate over time.
if you pay $100 more per month for one year, your monthly flat payment will be $400 less than if you had not made any payments.
your car may also be worth more now than it was when you first bought it, which can potentially allow you to refinance at a lower interest rate and spend even less money each month.
the question is; would the additional fee for renting an auto (since your old one has already depreciated) be greater or less than the amount of difference in what you're spending now compared to before?
also- what type of set up is this
how do i pay my car loan off in full?
floating two or three thousand dollars per month is the best way to pay off a car loan.
this can be done very easily with online banking, by setting up automatic payments for this amount every single month. it would entail some nominally higher fees for any overdrafts, but it's still worth doing if there are funds available. automated payments are also good because they make sure that the money gets taken out on time, and will deal with missed reminders more gently than any human might. missing a payment is not an issue if it doesn't happen on automatic-the system will generally just stop taking payments from your account instead of coming after you for interest penalties and such. if no one has access to your bank account info
