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Posts tagged with: rainy day fund

How to avoid paying too much in interest…

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Oops! Thanks to a heads up from readers, I realized I was paying my bills incorrectly!

I know, I know, leave it to me to figure out how to pay my bills wrong.

I haven’t been requesting my lender for Auto Loan 2 to place all payments toward principle and not advance the payment! I’m left paying a little more interest than I should be paying.

Even in my non-debt reduction days, I always paid a little more on my car payments. I’d let it get a month or two ahead and consider it my rainy day fund. If I couldn’t afford my car payment one month, who cared? I wouldn’t get penalized for not paying. But now that I’m a YEAR ahead in payments, perhaps it’s time to request all payments from here on out go toward the principle.

If you are pushing forward on those car payments (or mortgage payments, student loan payments, or other secured loans), remember to request a principle reduction.

And thanks to my readers for making the catch!!