Why is it that my payments never go down on my car note? eg: balance is 1000, I pay 500 a mo(minimum pymnt. required is 250.00/12months) but instead of my remaining balance being 500 it's 750. is it the type of loan I signed on to?
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carloans
ANSWERS: 1
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Loans or financing of any sort normally involved interest. If your payment plan involves interest or other fees, then your payment will first be put toward accrued interest, then fees, then the balance to the principal. I'd say, however, that fees/interest that take 50% of your payment are VERY steep. I'd check your contract and see how much you owe them each month. Tip: Pay AS MUCH AS POSSIBLE on loans of this sort, since the lower the principal is, the lower the interest payment will be in the long run. Hope this helps, Good luck
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