Skip to main content
Personal Finance & Money

You are not logged in. Your edit will be placed in a queue until it is peer reviewed.

We welcome edits that make the post easier to understand and more valuable for readers. Because community members review edits, please try to make the post substantially better than how you found it, for example, by fixing grammar or adding additional resources and hyperlinks.

9
  • 5
    calculator.net/… matches your analysis, with over $50k paid in interests over 15 years. "You need to set up automatic payments to keep to the schedule.". Absolutely. With 12.9% interest, it only takes 6 years for the loan to double. Commented 2 days ago
  • 2
    Depending on the loan, automatic payments can also reduce the variability in other ways. My mortgage payment, for example, is due on the 1st of each month, but if it's handled by automatic payment, I can schedule the payment for any day between the first and the 15th and it counts as being made on the first (that is, no additional interest is accrued on amount of the "late" payment, which would normally mean I'd earned a couple extra bucks of interest two weeks later). And when it falls on a weekend and the payment is debited as late as the 18th, it's still treated as on time. Commented 2 days ago
  • 2
    @ShadowRanger -- wow, that feels unusually generous to me. I wonder if it's by regulation or something? My experience with autopay is that it often comes with warnings that everything is still due when it's due, and if anything goes wrong with their autopay it's still your problem. Commented 2 days ago
  • 2
    @GlennWillen: I think if something went wrong (e.g. bank refuses the transfer, my account has insufficient funds, whatever), it would be on me, but mere business day scheduling issues are explicitly not a problem. shrugs Commented 2 days ago
  • 3
    This answer is all fine except the conclusion that the variation in payment dates will ever cause a problem. OP is making every payment before the deadline, and as long as that continues he won't ever be at risk of default. (Note: the deadline is not "one month after the previous payment was made", it is "one month after the previous deadline" -- that's how there can be more than a month between some payment pairs and everything is still fine) Commented yesterday