Wednesday, December 07, 2005

 

Yes You Can

No Credit Needed had a post yesterday about making more than one payment a month on your debt. One time he was paying $5/day on his credit cards just because he could. I think its a really good idea to make payments as often as you can so that you don't accidentally spend the money on something frivolous which is what I used to do with extra money.

I wanted to mention because it goes along with NCN's post that if you are able to make more than one car payment a month, check with your finance company to see if they will allow you to make a principal payment. That way the amount you pay is deducted from the amount you owe prior to interest. Your total amount owed will shrink faster and you will save yourself interest to boot. Right after I bought my car in 2002, I was able to make 6k principal payment which put me so far ahead of the payment schedule that I didn't have to make any payments for a year, which of course I didn't. In hindsight I should have kept making the payments and my car might be paid off already. Oh well.

This post reminds me, I'm going to go make a $5 payment on my #1 snowball card.

2 Comments:

Blogger ncnblog said...

hey, thanks for the love...
when i first started my auto loan payments, they were just putting the extra amounts towards the next payment, not principal...so be sure to note that on the check...

11:10 AM  
Anonymous personal finance advice said...

Came by your site and enjoyed reading. Look forward to reading more. Keep up the good work.

PS - Also added you to the personal finance bloggers net worth ranking.

3:04 PM  

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