Saturday, August 16, 2008

Answer to Comment Questions

I received this comment and thought I should answer it in a post:

dedicated said...
Stupid Question - Does the loan company require that you make your regular payment amount? Or do you do this for ease and record keeping? Do they have a limit on how many payments you can make a month?

Or maybe you are just trying to show in your minds eye the car is being paid off, by the shrinking payment book coupons?

Just curious. Not that it matters since you will be 4 months ahead on payoff it is all good.
Firstly, I don't think they are stupid questions at all.  I would probably have the same questions.  And if you don't ask, then how do you know?

I'm not really sure if the credit union we got the truck loan with would take partial payments, though I don't see why not.  

Yep, I do this for ease and record keeping.  I know it seems like a waste to write out separate checks when I'm mailing them all out in the same envelope, but 1) I don't use checks all that much anyway so I've got to use them for something--LOL; and 2) it helps me keep track of them better.

I don't know if they have a limit on how many payments can be sent in at once.  So far the most I've tested it with is 3 payments at once.  I would think they would just be happy to get their money.

Oh yes it is definitely nice to see the coupon book start to get smaller and smaller.  Our maturity date is supposed to be October 5, 2011.  My goal is to have it totally paid off by December 2009 or sooner.  I can do this by making at least 2 payments a month with some extra payments thrown in during the two months with extra paychecks.

Thanks for the great questions!  I hope that has cleared it up, but if not feel free to ask me some more questions.


Dedicated said...

Thanks for the clarification. I just was curious why you don't make electronic payments. Now I know!

I think at the rate you are going, you will meet your goal. Especially as the interest gets eliminated.

Andrea said...

Your welcome and thanks again for the questions!