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Posts tagged with: car payment

Old Financial Habits Die Hard…

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I was driving home from work last night when I noticed a new billboard. The local credit union was advertising car loan rates starting at 2.9% and suggested all motorists finance or refinance vehicles into their ‘great low rate’.

‘Hmm. Maybe I should consider refinancing this baby’ I thought as I tapped the steering wheel of my Mazda. ‘What am I paying now? 5.9%?’ I wondered.

I kept repeating the name of the credit union in my head over the next few miles until I remembered one fairly important fact…

We paid off my car two years ago when we decided to change our lives to become debt free.

I am so used to paying payments for everything in my life that not having a payment is still a foreign concept. I still smile when I remember… that payment is GONE!!! It was a nice ride home.


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!!


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