So, yesterday, or more specifically midnight last night, was one of my regularly scheduled Wanda Payments.
This means that I can, through a simple calculation determine just what amount each of these payments is coming off of the loan.
I use this to determine just how quickly these payments will chip away on that overall balance.
Currently my payments are $122.38 bi-weekly (every second Thursday) and the difference that this last payment made in the outstanding balance was $43.08.
This means that as it stands now, only 35% of that payment was on the principle (the outstanding balance) and 65% of that payment was interest.
Sooo . . . this got me thinking about new and inventive ways to pay as little interest as possible, for a few reasons, but mostly just for the sport of it.
Also, due to the fact that I spent approximately $50,000 over five years to pay back $17,000.00 in credit card debt for stuff that I don’t have any more, the thought of paying next to no interest on the remainder of this loan is veeeeerrrryyy appealing to me.
(That and the image of some fat-cat banker up in some concrete and glass tower having a complete hissy-fit over what I am doing and how I am “cheating the bank out of what is rightfully theirs (interest)” is also a happy thought.)
So, what I will try out next Thursday (or Wednesday evening rather) is to make an extra payment of $100.00 and see what effect that has on the interest paid on the loan.
This payment will sink me into my personal overdraft but the experiment will be worth it.
It should, in theory, cut those interest chucks in half, since I am paying an extra chunk and paying it early.
The plan, as it stands now is to pay $100.00 on the off-Thursdays, as in the Thursday that is not my regularly scheduled Wanda Payment. I will also put those large chunks of cash on the loan when I get paid.
The combination of all of this, should, keep the interest down to a minimum and thereby pay that loan off even faster. As well as cheat the bank out of as much cash as possible (evil cackle).
Unless, of course, there is some magic piece of fine print in which the bank can invoke to basically say that I am the customer and therefore must get screwed and always pay the maximum amount of interest.
No matter what happens, I will blog about it here so that, as always, you can learn from my experiences, more specifically, my mistakes.
As always: Keep your head up, your attitude positive, and keep moving forward!
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