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Thread: What would you do?
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08-16-2009, 12:29 AM #1Registered User
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What would you do?
Dh and I paid extra to our auto payment last month. So when we got this months bill, nothing is due. Would you use the money to just make the regular payment and just stay a month ahead, or roll this extra funds into your snowball for one month?
If you were in this situation, what would you do?
TIA
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08-16-2009, 01:39 AM #2Registered User
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Snowball.
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08-16-2009, 08:34 AM #3Registered User
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it looks like they applied the amount to your next payment instead of applying it to principal which will not save you money.
I would call them and demand that payment be put solely toward principal and make the regular payment this month.
They are trying to swindle you.. IMO.
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08-16-2009, 09:28 AM #4Registered User
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Yup call and apply that money to principal.
If they applied to next month, showing 0 balance, then it saves nothing. You just made the payment early.
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08-16-2009, 09:51 AM #5Registered User
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I used to do this when I had the money. There is another way of looking at it when it is one month ahead, like now. NOW should you have a little bit of a bad month you will either have it paid one month ahead OR be able to pay it after the orginal due date and still be on time. I know that has or had come in very handy several times. Does this make sense?
Say by you paying an extra payment ( as you did ) and now it's really not due again until Oct 15th. As long as there is a payment in there before Oct 15th it is never late.
I'd leave it. Keep on paying at least by due date or before and you are always safe. Besides paying early also knocks down interest. I've talked to the bank about this and know it's true. I asked once about house payments and the manager said just by paying from a few days to a week early on the payments you could knock off thousands in interest on the house. But everyone only sees paying extra. Same thing with the car. Pay the payment a few days early and save on interest also. I'd leave it.Bank of America is THE godfather of Hell with Wells Fargo running neck and neck. When the world ends the only things that will be left are cockroaches, Walmart, Wells Fargo and Bank of America. Not necessarily in that order. The order remains to be seen.
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08-16-2009, 11:22 AM #6Rude and Vile Master
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Paying early doesn't knock down interest nearly as much if they apply the payment to the next payment instead of entirely to principal. (Or is it principle...)
My suggestion - since you've paid this months bill early, send them this months bill with a note on the statement and on the check - APPLY TO PRINCIPAL ONLY.If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.
Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"
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