I’ve been trying to pay down my car loan faster, so I’ve been making extra payments. I use my local credit union’s online bill pay which let’s me put a memo on my ‘checks’. I write that the extra payment is supposed to all go into the principal. Apparently that is not the case.
I called customer service and I was informed that I couldn’t make a payment directly towards principal.
Every payment I make goes towards the interest accrued from the last payment and the principal. She suggested that I just put the extra money with my regular payments. I don’t want to do this for a couple reasons:
- The extra $40-50/week (snowflake money) that I save I want to immediately put it towards the loan to make sure I don’t spend it.
- I’m worried about the interest accruing between monthly payments.
I guess I’ll spend this weekend and see if I can find the cheapest route with this. I’ll being digging around Paid Twice to learn more about snowflaking.
Photo Credit: Rojer
