05/20/2023
Things to know🎯 I saw this post early morning‼️ I had to speak on this‼️
1) Never make the decision on your own to double up your payments or make biweekly payments on your own. Always call your bank or creditor to make sure they know what you are doing in advance.
2) The bank is in business to make money. Especially the interest first. If you send extra money without noting this on your account where you want that money to go ( i.e., the principal balance) then the bank is going to take their money first. They don’t care that you’re trying to pay them off faster!
3) Simple interest loans, based on a rate can be a good or a bad thing. Just know with all interest rates, if you do make your payments early or you make biweekly payments, you are paying less interest overall. So, for example… If you pay your car note once a month, you are paying interest on 30 or 31 days. If you pay your car note biweekly you’re paying interest on (usually) 15 days. Thus allowing you to pay off that loan faster & saving in the long run.
But again… Make an arrangement with your lender/bank prior to sending in additional money. Because they will ALWAYS take their money first. And your goal of paying off a debt faster will not be achieved.
For more information, comment “credit “ let’s chat📲
