okay, my husband & i have been working on paying our credit cards off for the past year and a half. next month our credit cards will be gone & we are going to start in on our car. here are the facts:
-just under $7,500 left on the loan
-$275 payment every month
-we want to make an additional principal payment of $750 each month
now for the question.....if we make an additional principal payment, will the interest on the regular payment go down, or just appear to do so since the principal amount gets lower? i'm kind of lost when it comes to how interest works. either way, we're going to do the payments the same because we want to be out of debt by the end of the year, but it would be an added bonus if this saves us money.
thanks!
-just under $7,500 left on the loan
-$275 payment every month
-we want to make an additional principal payment of $750 each month
now for the question.....if we make an additional principal payment, will the interest on the regular payment go down, or just appear to do so since the principal amount gets lower? i'm kind of lost when it comes to how interest works. either way, we're going to do the payments the same because we want to be out of debt by the end of the year, but it would be an added bonus if this saves us money.
thanks!