Mustering up the courage...

**mama2James** · 11-29-2008, 01:05 PM

Well, I guess courage is a strong word...but I find it hard to be "good" when the bills come in. Let me explain... We pay $600 per month on our truck loan even though the payment is $567. We've been doing that for quite a while, so when the bill comes in the amount due is always a little less than the month before. This time it was only $180. It is so tempting to just send in that small amount..but so far I have been successful in sending in the whole amount that I'd planned. The same thing happens when the CC loan company sends a bill saying that the required payment due that month is only $15, even though normally it's $427. They just do that to tempt you, I guess...making you think it's a reward. Does anyone else feel the urge to give in when this happens?
Actually, we may need to take advantage of one of those possibilites in the near future, we will be moving across country, my husband is getting out of the Air Force and we'll be starting over from scratch, so the extra money might be necessary until we both get paychecks from our new jobs.
I will most likely be over my $5000 moving fund goal by the time we leave, but I feel like it will still be tight.

**dschipman** · 11-29-2008, 03:30 PM

I have to totally agree with you on temptation of paying the lower amount. Just to make our bills simple. We always pay a rounded dollar amount. Just this month we got a bill from our CC company for $15 when we usually pay $50. It was hard writting that check,especially with christmas around the corner.

**Tightwad Mom** · 11-29-2008, 04:42 PM

Be strong.

I can see where it's tempting, but you know you're doing the right thing. Hang in there!

Good for you for paying more each month.

**lotsadebt** · 11-29-2008, 04:54 PM

Ah Yes.. I have almost fallen for that too. But. my auto loan payment book has a space for "additional principle". That is where the overage in payment is applied to the principle of the loan not the next payment. Where you are decreasing the total amount that you owe. My mortagage has the same thing on the coupon.

Although the overpayment as you describe is good for a "rainy day". Who knows some months you may need to make that lower payment.

**SaucyCranberry** · 11-29-2008, 05:52 PM

I so understand it. I really really do. But you know what? I bit my tongue and paid each month and we just got the title in the mail last week for our van--months early. Never lowering that amount helped pay it off. I bet I wouldn't even remember what I spent that extra $18 a month on now.

You can do it!! Stay strong!!!

(PS. Congrats your husband getting out of the AF. Mine retired this past February after 20 years. Best wishes in your new civilian lives!)

**Cricket1** · 11-29-2008, 06:02 PM

Can you have the higher amount automatically deducted from your checking account? That way, it just comes out and you don't have to be tempted to pay a lower amount each month.

We just got our title in the mail a few days ago and let me tell you, it feels sooooo good to own our van! Good luck and stay strong.

**Squirt** · 11-29-2008, 06:02 PM

You need to find a way to make that overpayment go towards the principal of your loan; otherwise, it is not saving you any on interest, which is why you would want to pay extra on your loan. Most lender's websites will have an address or directions for sending in principal payments. After you do that, the temptation won't be there, because you haven't paid ahead on next month's bill!

**PrairieRose** · 11-29-2008, 06:04 PM

Naturally they want you to drag it out and pay the most interest they can squeeze out of you.....Stay focused.....You'll be writing checks to yourself before long

.

**FrugalMomof3** · 11-29-2008, 06:05 PM

I have many times wanted to give in but never have. I am sure though that giving in one time or two wouldn't be so bad especially since your moving and could use the extra cash that month.

**winner** · 11-29-2008, 09:08 PM

Please be strong, stay focused and keep paying as you did. You will be gratefull at the end.

**michaelnolan** · 11-29-2008, 09:54 PM

I was going to mention what Squirt said above. Call your lender to make sure that every penny you pay over what is due is applied to the principal of your loan! Some lenders require that you pay the overage in a separate payment marked with "Apply to Principal" on it. I've been in that situation before!

**mamamia** · 11-29-2008, 11:47 PM

Originally Posted by SaucyCranberry

I so understand it. I really really do. But you know what? I bit my tongue and paid each month and we just got the title in the mail last week for our van--months early. Never lowering that amount helped pay it off. I bet I wouldn't even remember what I spent that extra $18 a month on now.

You can do it!! Stay strong!!!

(PS. Congrats your husband getting out of the AF. Mine retired this past February after 20 years. Best wishes in your new civilian lives!)

Hi SaucyCranberry! I really liked what you said about not being able to remember what you would've spent that extra $18 on.

How true that would be for me too. So thanks for bringing that out for us, it encouraged me MUCHO!!

Theresa

**mama2James** · 11-30-2008, 12:21 AM

Originally Posted by Squirt

You need to find a way to make that overpayment go towards the principal of your loan; otherwise, it is not saving you any on interest, which is why you would want to pay extra on your loan. Most lender's websites will have an address or directions for sending in principal payments. After you do that, the temptation won't be there, because you haven't paid ahead on next month's bill!

Thanks for the tip! I will look into that... I wonder what would happen though if I just keep doing it the way I am now? Eventually the payment due would be zero, right? And if I kept paying anyway, I would be paying down the loan just the same? Maybe I'm not understanding it correctly?

**peanut** · 11-30-2008, 04:50 PM

Originally Posted by mama2James

Thanks for the tip! I will look into that... I wonder what would happen though if I just keep doing it the way I am now? Eventually the payment due would be zero, right? And if I kept paying anyway, I would be paying down the loan just the same? Maybe I'm not understanding it correctly?

What happens is it isn't paid out as quickly if it's not put on principal. You end up paying more money than if you put the extra on principal...quite a bit more.

Jean

**MomToTwoBoys** · 11-30-2008, 05:27 PM

It's tempting for us sometimes, but we realize that the money would more than likely either go into savings or spent on something that we really don't need.

If I make a charge of about $400 on the CC and the min payment is only $40, I still pay the $400. If I don't do it now, it'll rack up more interest and in the end, that $360 I saved wouldn't actually be saved. We could be struggling for the month but it's better to temporarily struggle and pay off debt than continue to be in debt and live frivolously.