by Beks
It’s time for another debt update!
My Debt:
Original Debt: $38,495.86
Paid: $23, 640.18
Remaining: $14,855.68
Broken Down:
Auto Loan 1: $0
Credit Card: $0 Woo Hoo!
Student Loan: $9,285.14
Auto Loan 2: $5,570.54
Perhaps my favorite part was receiving a letter in the mail from Auto Loan 2 reminding me that my next car payment isn’t due until April 11, 2011.
It’s a good feeling.
Beks is a full-time government employee who enjoys blogging late into the night after her four kids have gone to sleep. She’s been married to Chris, her college sweetheart, for 15 years. In 2017, after 3 long years working the Dave Ramsey Baby Steps, they paid off more than $70K and became debt free. When she’s not working or blogging, she’s exploring the great outdoors.
Beks–I am VERY impressed with your progress, especially in this tough economy. You are a fantastic role model and I wish you and your husband continued success!
You need to call the company holding the note on the car. They appear to be applying the extra money as future payments, not principal reduction. By doing this, you are not receiving the benefit of the reduced interest.
This is a very common practice. Unless you specifically direct the money to principal reduction, many lenders apply extra money to future payments. Mortgage lenders often do this too.
I echo above what another reader said. Look into Lump Sum payments off your principal. That takes money off the end of your loan as well as all that pesky interest you pay on those months.
I am VERY impressed with your progress also! Way to go lady but I echo what was said above.. you need to make sure the extra money you pay goes to principal NOT just future payments… that way you are paying LESS for your car in the end. You HAVE to tell them that when you pay otherwise they will not do it.. they don’t make as much $$ that way. 😉
Way to go and thanks for inspiring us all! 🙂
Debra
Congratulations! You’re really on the home stretch!
http://40daysof.wordpress.com/2010/06/03/the-tundra/
Congrats! You are almost there! You must call the car company though because you are not receiving the interest deduction of principle payment curtailment. I used to include a note with each car payment :”All additional amount to be applied to principle.” This is what lowers your interest!!! Please follow the advice from your dear readers. Do the same note when paying over the amount of the mortgage.
Best of luck in the next year. You are in the home stretch!!!
Great job!!! I am down to 13,000 from 40k can’t wait to be debt free!
I love it when these bills collectors say that a next payment isn’t due until a ways off, but if you miss a regular payment they start calling and telling you that you are late.
I will never skip a payment again, and will never borrow again. I intend to be debt free before my move and then stay that way.
I always include a note with my car loan payment stating specifically the following:
$253.17 loan payment due
$576.83 extra principle payment
=
$830.00 total
As well as specifically stating *in writing* for them to apply the extra paid toward the principle balance of the loan. The end result of all this effort is that my loan payment due date still keeps advancing forward. Do I need to call them to straighten this out? What else can I do?
Way to go Beks!