How to Make Double Payments on a Car
With so many new incentives to stimulate sales, the auto industry is enticing you into buying a new car. Although many people have credit difficulties and borrowing money is an expensive venture, there are some strategies that will help you mitigate the cost of buying on credit. Making double car payments can help reduce the amount of interest you pay on your loan and put the title in your hands in half the time.
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Instructions
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Designate a specific amount of your monthly budget to your car payment. Eliminate or reduce spending in other negotiable areas of the budget such as dining out or entertainment. Determine how much you can realistically set aside without cutting into essentials. If your car payment is $200 per month, find another $200 per month in your budget that can be cut and set aside for a double car payment.
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You may feel less pain in the process using online bill pay. This is less cumbersome than writing a check or withdrawing cash and paying in person. Register all the information online to complete the transaction to the bank or individual to whom you make your car payment. One convenient click of the mouse can send the double payment on its way.
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Keep careful records of all payments made in a financial management notebook. Visualize the amount of money you have paid already and the balance going down. You may use bar graphs to show monthly reductions in the amount due. This will keep you motivated to make the double payments, save hundreds of dollars in interest and gain full ownership of the vehicle in half the time.
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Check with your lender to be sure your car loan does not contain a penalty if you pay it off early. This may negate much of the savings you would attain in paying less interest.
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References
- Photo Credit payments image by Valentin Mosichev from Fotolia.com
