AM I saving money if I make 2 payment every other month rather than 1 payment every month. I tryed it and looked at my statement and it looks like I am.
2007-01-31 01:24:38 · 4 answers · asked by suttlegn123 2 in Business & Finance ➔ Personal Finance
Some people misunderstood my question. I am making 2 payments at one time, like this month and next month. I belleive the person who first answered is right. By paying earlier it looks like I paid an axtra 100 and something toward my principal. It's the same concept at making bi-weekly payments except instead of more work it is less work, I send in 2 months payment at one time.
2007-01-31 02:51:05 · update #1
Im not skipping a payment I'd be making this month and next month and it does not compound because my bank pays both payments when they recieve it. So it's like paying the second payment before it compounds more interest
2007-01-31 04:38:26 · update #2
No matter how much you are paying you have to make a minimu payment every month. If you want to really save money send extra money every month. No matter how much you send double, triple or ten payments, your next payment is due next month as long as there is balance left. They can even add some late fees. Don't do what you're doing anymore, you will ruin your credit and probably waste a lot of money.
2007-01-31 02:35:27 · answer #1 · answered by Alexander K 3 · 1⤊ 0⤋
1
2016-09-26 10:07:50 · answer #2 · answered by Nancy 3 · 0⤊ 0⤋
??????
Bad idea. Everytime you miss a month it will look just like that (bad credit) irrespective if you double up each month. The loan company doesn't mind you paying more every second month (as this will reduce the interest you have to pay over the term of the loan)
Say you pay $200 (insteadof $100) in the first month, in the secind month you pay $0 it will look like you missed the second month payment. The third month you pay $200 (they'll treat it as $100 that month and $100 for the late payment of the second month.
THE BEST IS TO PAY IT WEEKLY OR BI-WEEKLY this way you are paying them faster so interest is lower and the loan gets paid off faster ($25/week or $50every two weeks is better than $100/momth)
2007-01-31 01:56:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You will be saving money on interest in the long run. One thing you may want to do is attach a note to your payment indicated that the difference between what you set payment is and the payment you make should be applied to the pincipal.
2007-01-31 01:32:21 · answer #4 · answered by Sunidaze 7 · 0⤊ 0⤋
There's still the compounding interest. Whenever you skip your month, it justs totes up more interest payment becuase you haven't reduced your principal any.
2007-01-31 03:12:59 · answer #5 · answered by parsonsel 6 · 0⤊ 1⤋