I have a 2003 Ford Windstar van that I owe $10,925 on with 22 payments left at an interest rate of 3.55 percent. I would like to be able to pay it off early in 10 more payments. Can anyone give me a formula on how to do that?
2007-02-15 22:10:41 · 7 answers · asked by James C 3 in Cars & Transportation ➔ Buying & Selling
Most car loans allow for a "pay down" on the principal. By rough calculations, you would need to pay about $925 per month to accomplish this (that is not quite double your payments). On some of my cars, I actually refinanced to lower interest and pay off faster, but I doubt that you'll beat the interest rate that you currently have, so I would not recommend that. I would just send in that amount and get it paid for. You could call the finance company and find out specific information to your loan, and they will tell you how they handle "pay down" circumstances. Good luck.
2007-02-16 01:40:36 · answer #1 · answered by Doug R 5 · 0⤊ 0⤋
You should pay off the credit card first IF and only IF. . . . . you will be able to not charge it up again. Then you'll be in worse shape than you are now. NEVER pay the minimum---cut back where you can and put that towards the debt. When the card is paid off, then put everything you would have paid to the credit card to the car, and before you know it you'll be debt free. It's a great feeling, trust me.
2016-05-24 06:19:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can pay it off quicker if your loan allows for extra principal payments. Just be careful. A lot of car loans do not allow you to make principal payments or pay it off early for a lower amount. If that is the case you have nothing to lose by continuing makeing the minimum payment each month.
2007-02-15 22:20:19 · answer #3 · answered by Bloodsucker 4 · 0⤊ 0⤋
Pay over the minimum payment. The extra goes straight to the principal not the interest.
2007-02-15 22:13:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Divide 10,925 by 22 payments. You will get money back from intrest saved.
2007-02-15 22:15:08 · answer #5 · answered by apache_ah64d 1 · 0⤊ 0⤋
I think you should ask a professional financial planner so that you can plan well.You can also discuss this matter with the person in charge from the bank where you make your loan.
2007-02-15 22:20:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋
um...double your payment amounts.
2007-02-15 22:14:05 · answer #7 · answered by julia4evert 4 · 0⤊ 0⤋