Can you explain making double car payments?

Rashad Marecki: Very hard to answer without knowing the terms of your loan. If it allows prepayment. They will figure out the amount of interest you have saved and lessen your last payment. Some don't allow prepayment so you pay a peanalty or the full amount even if you pay it sooner.

Maurice Breuning: Good job paying this loan off early! You did a good thing! Most car loans don't have pre-payment penalties, but you'll want to check the terms of the loan to make sure. A pre-payment penalty means they'll add a fee if you make payments early. Also check the terms or call the lender to see if making an additional payment extends the next payment due date (making the payment as you did). If it does, you can write a check for double the payment amount next month and have a little cushion just in case you're unable to make a payment in the future. If it doesn't extend the next due date and there aren't prepayment penalties, write "principal only" on any future "extr! a" payments.Loans accrue interest every day and payments (unless dictated to go toward principal only) go first toward paying off the interest that's accrued since the last payment, then toward reducing the principal. Assuming they cash those checks at the same time, there might be a days interest taken out of that extra payment (not much at all)....Show more

Valentine Willinger: The collector could interpret that you are prepaying the November payment... and thus your interest expense for the period will not be reduced. Mom was trying to tell you to inform them that your were prepaying principle so that interest expense would get reduced.... meaning you will pay off the entire loan early

Frederick Mccoach: Telling them to apply the second payment to the principal. You are paying on the loan and not interest. You will pay off quicker and save money on interest charges

Kiersten Clayburn: Assuming your Mother knows the terms of your loan, listen to her. If! you put "principle only" the full amount of the payment will ! go to principle and will reduce your balance by the amount of payment. If you didn't specify "principle only" then the usual amount will go to interest and the rest to principle.