Tuesday, August 27, 2013

Paid In Full

August was my last car payment.
(The day I bought my car)

I paid my car off 15 months early. It wasn't always easy but I did it. It's not like that was the only bill I had due each month. I've got a mortgage, credit card bills, utilities, etc. So a lot of people want to know, How did I pay it off early?

Small extra payments.

When I first got my car, I would pay as much as I could afford to spare. I would send in 50.00-100.00 extra each month towards the principle. In the beginning of a car loan the interest is at it's highest. There was some months that I could only afford to send 20.00 extra dollars a month but at least that was something. As time went on, the interest started to get lower because of the economic times, etc and the fact that I was paying down the principle. I would call the bank that carried my loan about every 6 months and ask for what the final payout amount would be. That would give me an idea of how much I still owed.

This past year I really started to see the progress and knew exactly how much I needed to send in as extra to pay it off before the end of the year. I wanted to try to pay it off earlier so I did the math and kept sending in an extra payment every pay day. That's how I was able to pay it off so early. If you have a car payment and you're trying to get it paid off before the pay off cards don't get discouraged. Even if you send in 5.00-10.00 dollars extra a month at least that's something. It helps in the end and it does save you money. Plus it gets you to that goal of being debt free from a car loan and frees up your money monthly that was going to your payment. So my advice is DO NOT get discouraged. I use to feel like I'd never get it paid off but I kept sending the money in.

Be warned.... my loan agency did it and I'm sure yours will too... once they realize that you keep sending in extra towards the principle and that you're going to  have your car paid off early, they will start to send you letters in the mail offering you to skip a months payment. They love to do this around the holidays and the start of summer. Don't go for it! They want to be able to charge you an entire extra month of interest. Keep making the payments and extra. Trust me!


Amber said...

I just paid off my car last month, and it was the best feeling ever! Such a weight lifted off my shoulders. Proud of you, girl!

Why Girls Are Weird said...

I remember when my ex was paying off his car and they did that whole "free month" thing. I was so pissed at him when I found out he went for it without talking to me.

Kudos on getting it paid off early! That must be an amazing feeling!

Deidre said...

Good for you! That's so awesome.

Megan said...

Way to go!!!!!!!!

Unknown said...

I remember when you first bought the car. That's AWESOME that you paid it off already. That's nuts that they give you a free month so it takes longer to pay it off. Man, you did it the right way.

Selma @ Crazy Little World Of Mine said...

wooohooo, proud of you!