Truck payment

hello all,
I'm very happy, this week i gave an 8k USD payment on my truck credit, that will help me a lot on saving interests! I want to pay for the truck asap to save some money.....

 

you know they apply that 8k all towards interest first right?

 

you got that wrong..... its capital..... at least thats in my contract.... with that payment im gonna reduce the time from 48 to 42 months.....

 

Wrong.... It should go toward the principle.

However - depending on your bank...and if you're not careful.... The bank will sneak it in as your next monthly payments - which is mostly interest (most likely).

If you ever make extra payments on any loan - you need to call your bank and make sure the extra money is going towards principle. Because - they'll screw you if you're not paying attention and don't follow-through with where the money is going.

 

You are right Janster, you have to be very careful with extra payments...

 

When doing a balloon payment generally it goes towards principal. You should, however, SPECIFY In WRITING you want it towards principal in case they wanna be a screw (which from what I read here on some threads is entirely possible)