Did you know that every time you make a payment by check or money order to pay your monthly loan payment, that you are paying most of the interest off first? A quicker way to pay off your loan, and lower the interest is simple. Write somewhere on the check, “Pay to the Principal,”. This forces the loan company to take payment off the actual cost of your merchandise or home you borrowed finance for. If you are paying off more interest than the cost, it will take more months to pay off the debt, which means more interest.
Many credit companies realize that people do not know that they set up your payments as to start off paying the interest first. However you have the right to correct this sneak tactic of theirs with this simple 4 words. As a check is a form of a legal document, what you write on it must be followed by the people you pay. If you do not take this advise, it may be well past half your loan time before paying off most of the actual cost.
