Should I pay more than the $62 minimum on my 64% interest loan?

F

fadingbagel

New Member
I applied for a $2,400 loan at a very high 64% interest rate. I normally wouldn’t, but I had no other choice. There’s no penalty for paying it off early. My minimum monthly payment is $62. What should I make my payment?
 
Pay as much as you possibly can, because over half of that payment is going to interest. I truly recommend making a double payment to help cut down on interest. I really suggest seeing if you can refinance at a credit union or something, because that interest rate is beyond excessive.
 
Pay it off in 10 months at $240
Or $300 in 8

Take the cost, divide by how many months you want to get it paid off in.

Depends on what you can afford.

I tell my husband ALL the time:
As long as you make your scheduled payment monthly, youre good.
But you can add $20, $40, or whatever you want between payments.

I say if you can pay more than your minimum, pay it off quicker.
 
I assume that if you had to take out a $2,400 loan, either yo ur income is low or you have very little left at the end of the month and no savings. Whatever the case, a 64% interest rate is diabolical. You should make whatever payment above the minimum you can afford. If your budget allows, apply extra to it. If it does not, take on a side hustle, sell items, and get out of that loan as soon as possible, so you are not wasting literally thousands of dollars on interest.
 
I would never have taken the loan with such a high interest rate, since nothing really goes toward principal only the rest goes to interest and you don’t really get anywhere on it.
 
At 64% interest, your $2,400 loan is piling up over $120 in interest every month, so that $62 minimum doesn’t even cover the interest and your balance will grow if you only pay that. You’ll want to treat this like an emergency debt and aim for a $300 monthly payment that actually hits hte principal and should have it paid off in about 9–10 months instead of dragging it out and wasting a ton on interest. Since there’s no early payoff penalty, any extra you can toss at it helps even more, and you should look into refinancing as soon as possible, because almost any other rate would be better than 64%.
 
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