Paying off truck

Family circumstances also play a BIG part of the game.
My wife doesn't work, never needed to thankfully. We have 3 boys that she takes care of, and so on. Obviously, with health insurance for us all, mortgage, etc.
Compare me to a guy that is single, lives in a trailer or on his own in a small house, and he will pay that rig off a lot faster. Same as a guy that has a wife with a good job, someone that inherited some money, and so on.
Just because you hear of the guys paying off a truck in 2 yrs, doesnt mean they are making more than you or me. It's normally that their circumstances are a lot different is all. Dont get tied up in it mate, it will drive you nuts.

Martin

 

Most credit unions lend money on simple interest. That means that you only pay interest on the length of time you have the loan. Most banks have compound interest and will charge a penalty for early pay off. With most banks you will pay most of the interest at the beginning of the loan. Some mortgages have a pre payment penalty if you pay the loan off within the first 2 or 3 years. I don't recall a penalty on commercial loans that I have had.

The truck that I paid off early was financed at a major bank. I chose to pay about 10% extra over the payment. I was able to pay it off several months earlier than was necessary. I did save interest. Had I paid that much during the entire life of the loan, I could have paid it off more than a year early.

 

my loan specifically states pay off amount. and date loan expires. maybe i need a new CU. cuz i turn in 2 payments and i don't see much change in my balance.

so if i paid my 5 year loan off in 2 1/2 years. i pay the same amount.

 

In my circumstances, I pay the biggest thieves (IRS) or trade up. I got nailed last year due to hauling wind energy, it wont happen again...trade up it will be most likely.

Martin

 

That is easy also. Call around to local banks, or the regular bank you deal with, or even the internet - your shopping for the lowest interest rate on the loan is all.

 

Most installment loans have a provision in them called the "rules of 78", an accounting term. It basically means if you pay extra on your loan, you are paying toward interest, not the principal. A simple interest loan would be the best. I have done this on a second house. Basically I had to make a minimal principal payment every 90 days, plus interest. Then the loan was automatically renewed for another 90 days. These type of loans are hard to get these days, but I would suggest checking into small independent banks that you have a relationship with.

 

Buy a trailer, it will more than pay for itself and help pay for the truck. I am with LS and my trailer earned me a little over $22,000 last year.