Quote:
Originally Posted by ktmarvels
If you make a principle payment this will reduce the amount of interest you will pay overall and potentially reduce the life of the loan. You may have to specify "principle payment" otherwise the company may not apply it in this manner, and it will not save money in the end. Make sure your loan allows prinicple payments and early payoffs without penalties.
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Even if you do specify to allocate money to the principal, it doesn't always happen unless you call customer service several times to follow-up. Just experienced this last week!