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[–] kurfu 0 points 4 points (+4|-0) ago  (edited ago)

The interest you pay is a percentage of what you owe. As you pay off the principal, the amount of your monthly payment will gradually be less for interest, and more for principal.

If you want to get ahead more quickly, you can always pay more than the monthly required payment. I think I saved a few months on my last car loan by making half a payment every two weeks, instead of one payment per month. (works out to 13 full payments per year)

Not sure why you interest payment would jump so high in the third month, though.

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[–] kurfu 0 points 2 points (+2|-0) ago 

Well, most of it anyway. The smaller the amount you still owe, the less they charge you in interest each month.

This might help: https://en.wikipedia.org/wiki/Amortization_schedule

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[–] arrggg 0 points 2 points (+2|-0) ago 

That is a horrible loan, and they appear to be ripping you off. The interest portion should be slowly decreasing every month. Refinance that load with a credit union as fast as possible.

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[–] arrggg 0 points 1 point (+1|-0) ago 

Maybe so, but It will be little better after 6 months of making payments on time. The banks want your interest money too, and will undercut your current loan holder to get it.

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[–] Admiral_Mason ago 

I would really try to refinance that loan..... 18% is near criminal...

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[–] tryingthisout ago  (edited ago)

It's possible the money is not being processed correctly. Your loan has a high interest rate but there should be a trend you see in % of interest vs. principal. At least that's what I always see with my loans. Get some paper statements and make sure there hasn't been a mistake, or that they aren't playing games and charging bogus fees, etc.

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