Question about a loan...

Hmmmm...My best guess is that they are saying that they won't debit or charge you for a certain number of payment dates (for example, if you send enough of a payment to cover the entire payment for this month and next month, you won't be due again until two months from now) I think that's what it means because they are saying they will "advance your next payment due date by the number of whole payments satisfied by the extra funds"....But, what happens if you send in, for example, a payment and a half? Do you still owe the full payment on the next due date or just half? It is confusing....

We need Goudah....

LOL @ we need goud! She's one smart lady isn't she? Ok well that's how i read it too but just wanted to make sure... seems they just wanna make sure they keep u in debt forever! I want this paid off as soon as possible! So i can just keep sending them payments but will it be applied to the principle amount automatically?
Or do i have to do like on my mortage and break it up for them?
:?:
Ang

You are trying to pay it off early correct? I agree with Eleroo on what it means, but if you are trying to pay it early the you do not want them to do that. Call them and tell them that you want to send in extra money to pay off the principle, but you do not want it to change your payment dates. Ask them what they need for you to write to achieve that. What they are trying to do is keep their interest, but that's not what you want. You want to make sure any extra money sent to them comes off the principle which will lower the amount of interest you pay.

Ang this is a standard clause in a installment contract.It states any extra money is applied to future payments meaning they would advance the payment date to future month if extra note is paid.

Continue to apply extra money to loan and the loan will be paid off sooner than the contract specifies saving yourself money in the long run.

EXACTLY pyb!!
That was my main concern! I will call but i'm thinking if i put in teh memo portion of the check that $xx goes to payment and $xx to principal that sud work but i will call to make sure! Sometimes i have a hard time trying to say what i really mean on here!
Thanks,
Ang

I have no idea! They do want to keep you in debt forever. I think it is crazy that they won't take every cent of extra money you send and apply it to the principal and only charge interest on the money you actually owe...But that would make too much sense!
:?

Wooohooo, I finally figured out how to use the emoticons :P I'm going to be using the hell out of them now! :wink: See?

Holy Schmoly Cajun! I'm sorry, i must be an idiot cuz i dont' get what ur saying! :roll:
SIGHS,
Ang

LOL el!
Not hard to use huh? See i can understand how to use the smileys but i can't get what they are saying on this loan! Simple minded i guess! ha ha
:lol:
Ang

What you want to put on there should work, but some companies are idiots so I would just verify how they want you to write it so you get credited correctly.

Not at all Ang. This is very confusing! I'm sure they do it on purpose so that you have to keep giving them money. (Greedy a$$es) I agree with pyb and cajun...keep paying them extra but make sure your money is being applied correctly.

The gist of what I said is when you pay extra on a loan and it equals or exceeds a monthly payment,they will advance the next payment by a month to keep the loan on track. By paying extra and doing it every month,you will save money on interest and finish paying it off sooner.

So, even if you cannot pay a complete extra payment, some money is better than none? They can only charge interest on the money that is left owing, can't they? It seems like it would be better to pay only a partial extra payment because then they would be still getting a monthly payment which means less interum time for the interest to accrue...if I'm understanding correctly...

Ok so just send the extra? I'm sorry this is so confusing to me! I feel like i'm reading a diff language!
DOH me!
Maybe i sudn't even have a loan if i can't even understand the language of it! But this is to pay my dear friends at CACH!
;)
Ang

It is confusing, Ang!

Ok guess i'm a bit slow today but i JUST realized that ur avatar is a cat! ha ha
Maybe i need more sleep!
Ang

Ang - you didn't mention if this was a regular loan, or a PDL??

A traditional installment loan, like Cajun has said, anything extra you send will 1) count toward subsequent payments and 2) should go directly toward the principal balance. For example, if your monthly car-note is $220 and you send in $440, then 1) it will count as 2 payments and you would be able to 'skip' a month, and 2) that extra $220 will go right to the principal without having any interest taken out of it.

Now, if this is a PDL telling you this, you might want to verify with them that it indeed goes to your principal balance - and not that in some quirky way they apply toward your next rollover.

Yep, it's a cat. I didn't pick it out myself because I am computer illiterate and it took me a minute to figure out what it was too. But I love it!

No no it's not a pdl.. its a reg loan!
Thanks debt i now finally understand!
Ang

You need to put a note in with your payment explaining what you want done with the extra money. Lots of times they probably don't pay attention to what is written in the memo part of the check.

ladybug