I currently have an installment loan for a car. It is as follows:
Principal Balance: 5,323.45
Interest Balance: 16.56
Estimated Net Payoff: 5,490.01
Original Loan Date: 09/08/2008
Maturity Date: 10/08/2011
Current Interest Rate: 14.2000%
One Day's Interest: 2.07
Amount Due: 08/08/2009 228.02
Last Payment: 07/01/2009 230.00
Interest Paid 2009: 470.53
Interest Paid 2008: 220.74
My question regards the interest balance. Is the balance of the interest (16.56) the last amount of interest I have to pay before the rest of my payments go directly to the principle? Or is that how much interest that has accumulated for each day so far? Also, how is this applied? 14% interest on a 6,700 loan is about $950. So, would it help me any if I started paying this off in huge increments of $2000 a month? Any help is appreciated. I know the rate is high, but you have to bite the bullet when you haven't any credit. Thanks.
Principal Balance: 5,323.45
Interest Balance: 16.56
Estimated Net Payoff: 5,490.01
Original Loan Date: 09/08/2008
Maturity Date: 10/08/2011
Current Interest Rate: 14.2000%
One Day's Interest: 2.07
Amount Due: 08/08/2009 228.02
Last Payment: 07/01/2009 230.00
Interest Paid 2009: 470.53
Interest Paid 2008: 220.74
My question regards the interest balance. Is the balance of the interest (16.56) the last amount of interest I have to pay before the rest of my payments go directly to the principle? Or is that how much interest that has accumulated for each day so far? Also, how is this applied? 14% interest on a 6,700 loan is about $950. So, would it help me any if I started paying this off in huge increments of $2000 a month? Any help is appreciated. I know the rate is high, but you have to bite the bullet when you haven't any credit. Thanks.