Paying Off Car Loan Early | Principal vs Extra Payment Explained

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WATCH as I show you how Paying OFF car loan EARLY principal payments works out in your favor. It is the winning equation that banks don't what you know this but it can save you thousands of dollars.
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You have two choices when sending extra money to your lender when paying off car loan early. Principal payment or extra monthly payment. Principal payments allow you to pay off car loan early. Also, paying off car loan early, good for credit? Not always but I'd chose no payments every time. Principal payments work like this all the money goes straight to the principal balance reducing how much you owe and how much you pay in interest. Monthly payments are required per your agreement and sending extra money just pays up the loan and does nothing to you pay off your loan early or get out debt faster.
It does not matter if you have a car loan, student loan, mortgage, personal loan or some other type of auto related loan. As long as you don't have prepayment penalties and is a simple interest fixed rate loan extra money towards the principal will help you pay off your loan faster while saving you money. If the choice was paying off car loan faster vs investing, I would chose paying off the car loan. Investing is great and needed but think about how much more you could invest once you pay off your debt and become debt free.
Making extra principal payments helped me pay off my truck early, 50 months ahead of schedule and saved me thousands in interest. Give it a try this stuff really works.
Thank you for watching and be sure to share with a friend who could use this information.
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21 июл 2024

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Комментарии : 1,7 тыс.

@DiamondEdwards 4 года назад

Check out my video ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-NoXHrcdZItI.html showing how I used this method to pay off a $40K truck in 34 months - 5 Tips to paying off a car loan early. I show exactly how principal payments should look on loan. Thanks for watching and be sure to subscribe.

@dawneishahill3900 4 года назад

You wouldn't happen to know if principal payments can be made to federal student loans ???

@DiamondEdwards 4 года назад

Dawneisha Hill check with the servicing company but when I had Navient any amount over the interest due that month went to principal as long as I made the extra payment with the monthly payment. I didn’t have to request it. My car loan and mortgage were the opposite. I had to request it. If you can’t another option is to open a saving account and put all your extra payments there and make one big payment when the time is right! Good luck and thanks for supporting the channel.

@dawneishahill3900 4 года назад

My pleasure. Thanks for responding. You got yourself a new subscriber.

@JeonGregory 4 года назад

Thank you for sharing that knowledge my question is. How can I setup a Principal payment and can credit union bank accept it !

@vickyf1051 4 года назад

@@dawneishahill3900 no its veh loan

@jeffalex 3 года назад

made a call to my bank right after watching this video. i had thought my extra payments were going towards principal this whole time! but the bank was just holding on to it. i had them put it towards principal, and then i came back here and hit the like button. thank you!

@AdrianCardoza 3 года назад

You can do that? I’ve been paying extra each month but haven’t specified that it be principal.

@jeffalex 3 года назад

@@AdrianCardoza i think of your loan is through the car manufacturer it’s easier. but mines is through a bank and they just keep my extra balance and apply it to the next month’s due balance. but i actually want it to go towards principal right then and there

@AdrianCardoza 3 года назад

@@jeffalex interesting. My loan is through a credit union. I’ll call them tomorrow!

@kimberlywinkfield876 3 года назад

@Jeffrey Alex you have to specifically tell them you want it towards principal If done by check in the memo part let them know it’s towards principal This will definitely knock time off your loan

@jayem5807 3 года назад

Ok, what? I need to do more research 😩

@TheOnlyJu305 3 месяца назад

I sent a previous loan company my full $10k bonus. They ended up not even applying it for three months until I realized it was never added. I politely called and asked why it was not added towards the Principal like I had requested. They tried giving me the run around, but I’m a Karen when it comes to corporate America. I gave them the “it’s okay I know who to call next, the Attorney General office”. Within like 3 days the balance was lowered. 😂

@donnamariegayle194 2 года назад

Thank you so much. I sent $2000.00 my car payment and told them to put it towards my principal. I didn’t follow up and they didn’t do it. Telling me I don’t have to pay for the next four months. I informed them that their calls are recorded and I specifically advised that it’s a principal deposit. My account was updated. They gave me stories until I requested to speak to a supervisor, it took three days before it reflected on my account and this conversation was going on for two weeks. So watch out for them and follow up.

@DiamondEdwards 2 года назад

Thanks for sharing! I'm glad you didn't fall for their games.

@griselleisara3799 3 года назад

I owe 5,000. On my car. Can’t wait to pay this off. Almost there 👏👏👏👏👏👏

@manoloanleu1720 4 года назад

The 3 people who disliked this are car dealers and banks

@DiamondEdwards 4 года назад

😂 Couldn't have said it better myself. 😅

@sorayabaudin1657 4 года назад

Exactly

@2000rayc 3 года назад

if i have 23k left to pay on car. but interest rate is 16.4. can i just give 23k for the car. or do they want interest still?

@anglin904 3 года назад

Hehe🤣🤦🏾‍♂️

@2000rayc 3 года назад

@@anglin904 he he?

@VictorMartinez-dv6md 4 месяца назад

I am 43 years old and realizing more and more how my parents failed me on topics such as these. I currently have 5 children and will be a better guide for them. It’s time we all be more proactive to end the generational curses.

@Impekible1 3 месяца назад

I agree with this so much.!!!

@Wilde_Childe 2 месяца назад

Same here! I am 45 and just now realized how ignorant I and my whole family have been . It's a travesty that the system is purposefully designed to keep us this way.

@madeyoulook.. Месяц назад

Blaming others is shameful, especially family members. Countless successful people were not raised with financial education. Hold yourself accountable for your situation. It doesn't take a rocket scientist to see that having a large family will cost a substantial amount of money. These comments are comical.

@xaydegonzalez6007 29 дней назад

@@madeyoulook..this right here. Take accountability!

@dboulier54 19 дней назад

Kids don’t listen and therefore 30 years later they make these comments.

@salvadorllerenas140 3 года назад

Bro this is the stuff we need to be taught in schools! Seriously thanks for the good look brother 🙏 you will save many people so many thousands of dollars. Seriously you’re a great person!

@DiamondEdwards 3 года назад

I appreciate that!

@gladiator_games 3 года назад

I agree with that. School not teaching us how money, loans , principal , and interest works.

@waterheaterservices 2 года назад

School teaching how to have Party approved correct thinking, speech and voting.

@misterjoey3384 2 года назад

School's only purpose is to make you a good dent slave

@DIDDYTBABY 2 года назад

When it’s the “school to prison” pipeline why would they. Malcolm said it best. Only a FOOL allows his ENEMY to teach his children

@ntoomey2147 2 года назад

When making your payments on the principal you MUST speak to a representative and let them know that the extra money you're paying is on the principal. Otherwise they will automatically apply towards the next payment which will still have the interest rate applied fees. Paying towards the principal will remove the interest rate fees.

@Metrix72 2 года назад

You said it best because I was really confused what he was saying thanks

@427skies 2 года назад

Unless you pay through capital one. You can apply the principal yourself.

@georgiafearnley8696 Год назад

Hi! Please can you explain this more? I am slightly confused, so when they were automatically applying it to your next payment, was it deducted? or were you still having to pay interest on the full amount each month?

@ntoomey2147 Год назад

@@georgiafearnley8696 The best way I can answer that is with an example. When make a car payment, part of your payment will be on the principle (cost of the car) and the other part will be on the interest (the loan). When you pay your regular payment you can add whatever your principle is to your regular payment. You will need to call them and let them know that the extra amount you paid you would like for it to be applied on the backend of your loan (last payment). This will prevent you having to pay interest on that last payment. If you do this to 3 or 6 or however many payments you will shorten your loan term and save a lot of money by not having to pay the interest on those payments on the backend. I hope that made sense and answered your question. Some creditors have a prepayment restriction. Some will let you do it a couple of times and some won't let you do it all. Some will give you a prepayment penalty.

@keianasimpson7162 Год назад

How to apply money through the principal? The month I paid was 12/24 and now that I paid more than double my monthly payment, my next payment due date went to March

@peppaminttea 4 года назад

I love that you used visual examples instead of just being a talking head. Thank you!!

@DiamondEdwards 4 года назад

Thank! For all my visual learner out there!💪

@2000rayc 3 года назад

if i have 23k left to pay on car. but interest rate is 16.4. can i just give 23k for the car. or do they want interest still?

@jayem5807 3 года назад

Subscribed for that reason

@steveagomez7 4 месяца назад

Yes thank you for that! Showed exactly what was needed. @@DiamondEdwards

@thatoneginger7530 4 года назад

Principal payments, just paid an additional 2,000$ towards my car on top of my monthly payments, all because of this video, great help :)

@DiamondEdwards 4 года назад

Nice work! Feels good to see that balance drop right? Pay attention to next months regular payment and compare the amount of interest paid to this month and you will be smiling even more! Glad to help and I'll be adding new videos twice a week so make sure you notifications are turned on. Thanks for supporting my channel.

@juanguzman1563 2 года назад

Hey this really scared me but I’m going to do this next month. I have 13,000 left on my car, with my regular payment, I want to put at least $1000 to the principal. Is that good or not. Also if the results are good should I increase the amount towards my principal.

@thatoneginger7530 2 года назад

@@juanguzman1563 do it if you can afford it, if not anything additional to the principal will do goood to combat interest, preferably at least double the payment.

@adhamkadaj520 2 года назад

Is it possible to make the monthly payment and the complete rest of the principal with that extra principal payment?

@PhilMarshall91 Год назад

Does this method or principal only apply if your are paying an extra $4000+ consistently ? At point the saving on interest is a mute point

@nicolek.1839 2 года назад

Most of us thought we were doing the right thing, being responsible and getting ahead by behaving like Mr. Extra all the while these banks have had us over a barrel, punishing us for our ignorance and sense of responsibility. Thank you for letting us know how we can financially fight back. I’ve been paying hundreds beyond my minimum payment every month assuming the bank was moving the extra funds to the principal. If only I knew this sooner but I’m so glad I have this knowledge now.

@foreversmoov102 3 года назад

I’m over here being Mr Extra smh I kept wondering why I felt like my balance BARELY EVER moved... thanks for this!

@lakishareaves 2 года назад

Same here

@alikayosan1692 4 года назад

I just calculated and I basically just bought the bank another car smh, thanks for the knowledge brother

@DiamondEdwards 4 года назад

Once we start seeing interest for what it is a penalty for borrowing money we start thinking and moving differently. Thanks for supporting the channel!

@alikayosan1692 4 года назад

Diamond Edwards yes sir keep up the good work bro my eyes are open now 🙏🏽🙏🏽🙏🏽🙏🏽

@pbj0815 3 года назад

Same 😖😖😖😖

@pacs0508 2 года назад

I bought them three cars off of one loan. We rob the bank and we go to prison. They rob the consumer and they make a profit.

@alikayosan1692 2 года назад

@@pacs0508 criminal system

@brandonberg7703 Год назад

Bought a car for $15,000 with 27% interest rate. I noticed after a year of payments, my balance was only $1000 less. My wife stumbled upon your video in January and started the principal payment, and now we are at 12,000. Thank you!

@sken17 Год назад

27% interest!?!? Thats INSANE! Get a lower rate if you can. If you can't get a lower rate, pay that off immediately

@Tesla_702 11 месяцев назад

dang 27 apr insane . that 15k car is prob 30

@bootyodor4555 9 месяцев назад

you need to refinance like yesterday lol

@brandonberg7703 9 месяцев назад

@bootyodor4555 About the last 2 months, they stopped putting it towards the principal and put it towards the interest. I can't get anyone to answer the phone.

@TheSpecialist54 9 месяцев назад

@@brandonberg7703 send in a money order with instructions to apply to principal. always have a paper trail, banks lie to us their job is to make money for the company/bank.

@edwardmoore9959 3 года назад

This is something I've been doing for years. I keep my cars for a minimum of ten years and I have a strong hatred for car payments. This is why I get the maximum loan length, usually six years, and pay it off within 2 to a maximum of three years. I like the flexibility in the event some unforeseen emergency comes up like unexpected home repair. Basically if my required payment is $225/month I send in $300+. The extra goes to the principle and overall lowers the amount of interest I pay. i make sure to designate the extra payment amount (ex. $75) is for principle. I also do the same thing for my home. I've saved tons of money on avoided interest by doing this. I love his analogy of equating interest to being a penalty for borrowing money.

@DiamondEdwards 3 года назад

I tend to keep my cars for a long time too. After I paid off my last car which was my last debt, I started saving money for my next car. Two years later, I have enough to buy a nice car but have no plans to replacement either of our cars. One is 5 years old and the other is 11 years old. When I time come I will just pull the cash from the car fund which I no longer fund. Some people have requested that I do this video covering mortgages. That is a great idea because the savings on a mortgage will be huge! Great Job Edward and thanks for sharing!

@edwardmoore9959 3 года назад

@@DiamondEdwards One of the things I like about people like you is the willingness to make videos on financial literacy that is spot on and will be useful for YEARS to come. One of the things I've preached to family, friends and anyone willing to listen is that debt is slavery. As long as you have it you must service it. The less debt you have, the more freedom you have to pursue your dreams and aspirations. Keep doing what you're doing. You're making a positive contribution to the financial literacy that society sorely needs.

@ESBEAUTII 3 года назад

Omg I’m going to do this. I got my car in March and I’ve been paying over the amount due but all for nothing because I wasn’t making the extra amount a principal only payment but it’s not too late to start because I want it paid off earlier

@margaritaramos3393 2 года назад

Question. I have a car payment of 397.00. Looking to put 1500.00 down. Should I tell the bank I want the 1103.00 to go to principal?

@xojoeel 6 месяцев назад

so when youve done this and paid off your loan balance to 0$ but says you still have 20 more payments will it just close or how does that work any one know?

@gundeminnotlar4841 2 года назад

When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen & experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss 💪🏽 *850 tycoons repair*

@TheJUiCy1117 3 года назад

Man I am so mad at myself! I’ve been paying extra for the past 4 years and just now seeing this video!! Thanks for sharing this knowledge.

@DiamondEdwards 3 года назад

On the bright side you are farther ahead than not paying extra!

@nicolek.1839 2 года назад

Same same same!

@txmomoftwins02 Год назад

LOL I feel your pain

@felesiaawang705 4 года назад

Had Ive known this method long time ago I would've had debts freedom. Anyways better late than never. Thanks a million.

@2000rayc 3 года назад

if i have 23k left to pay on car. but interest rate is 16.4. can i just give 23k for the car. or do they want interest still?

@TotalHealthJunkie 3 года назад

omg thids is insaaaaaaaaaaaane. I am so pissed at myself for not having learned this sooner. Thank you thank you

@DiamondEdwards 3 года назад

Always verify your payments were applied correctly!

@pbj0815 3 года назад

@@DiamondEdwards how???!

@joshpeeler9464 4 года назад

I've watched a few videos and read many articles about payments and principle. This is hands down the best explanation I've heard so far! Very well explained. Thank you!

@DiamondEdwards 4 года назад

Wow, thank you for watching I''m glad was helpful.

@gabriellewilliams1048 3 года назад

POWER OF PRINCIPLE PAYMENTS! Thank you.

@Haktendoo Месяц назад

Wow 2024 and this helped. They should really teach people this in schools! They should teach real life things in schools! I can’t believe I’ve been making extra payments and I thinking it will pay off my loan faster. I’ll be making it towards the principal now. Thank you for this video!

@sacha242 Год назад

Wow! This is was so insightful and helpful. Here I was thinking paying extra was the right thing but when I checked my balance the math was NOT mathing. Thank you for explaining why!!! Knowledge js power. Pirinciple payments here we come.

@anntigonnesekhmet8448 4 года назад

My bank is going to get their butts kicked for this! I told them to add to principle at first without understanding what that meant cause the folks told me to do it. I was paying 2k a month for my car. 1500 extra. And they were telling me they were adding towards principle but were thanking me for "paying a couple months ahead of time". That term really caught me in this video. I have been doing the math and its exactly as this example stated! My extra payments felt like they were going no where! I am not as low as i should be on my car. Smh. This helped so much. Going to call those guys and raise hell for them not doing as I've asked. Thank youuuuu !

@DiamondEdwards 4 года назад

And I wouldn’t let up until every payment is corrected! Good on you for knocking this debt out. #nopayments

@HeyItsJay24 2 года назад

Those examples hurt my soul because I had done it the Mr. Extra way a couple years ago. At the time I couldn't figure out what the big deal was about paying off early, because all it did was push my next payment out. But that's because appearently I wasn't actually paying it off early. Excellent content. We all need a mindset shift to take control of our finacial futures and content like this helps alot.

@DiamondEdwards 2 года назад

Thank you for that comment. Trust me when I say a lot of what I’ve learned cost me a check.

@Sean-Adventures Год назад

@@DiamondEdwards Hey, could you help me out. I just got a car and I think I’m going the Mr. Extra way and I’m a bit confused if he is paying double but his monthly is $736.66 each month

@alxfort39 2 года назад

This is the info every other video claims to tell you. You actually do it...thank you! You earned that like.

@rolexx.x0 Год назад

Wow literally subscribed right after this !! Talked to a friend earlier and this video plus that conversation gave me everything I needed I’m on my second car loan and now will be able to start and do things the correct way to get ahead 🙌🏼

@rokucam1958 3 года назад

Thank you SO much for this. I'm a visual person and have been looking for examples of what principle vs interest payments look like on paper. This is perfect!

@itskaylaelizabeth2227 3 года назад

This was so helpful! I had no idea this was a thing. I got my first car in 2019 and was paying so much each month only for me to STILL owe a huge majority of my loan. Now I know. This has been a life saver. Thank you!

@Plagius8 3 года назад

U are straight foward easy going and excellent delivery. I'll be watching you for years to come. 👌👍🤛

@usausa3234 8 месяцев назад

I feel taken advantage! Thank you for this video!

@gussta1 3 года назад

How does this channel not have move subs? You're dropping great info that everyone needs to hear and you're making it easy to understand. Keep up the good work!

@DiamondEdwards 3 года назад

I appreciate that!

@necelashawn7850 3 года назад

Hands down one of the BEST videos I’ve ever seen on RU-vid thank you soooo much for taking the time to share your knowledge sharing this video with everyone I know

@DiamondEdwards 3 года назад

Wow, thank you!

@cococoif404 2 года назад

Diamond, THANK YOU so much for your insight 🙌🏿 I never knew any such thing…in the past I’ve always paid an extra payment thinking that I was doing something. I just made a sizable payment on the principal of my loan and it was a completely different process than simply making an extra payment.

@SoberAF1 3 года назад

Thanks, I’ve watched several videos and this is finally what I needed

@naheerameer8268 2 года назад

Thank you for this! Just got into two car loans (one is 5 mo old the other is 1 mo) and I told my wife these loans are not going to hang over us - we’re paying them off earlier than 3 years even though they gave us the rate for 60 months. I was making the same mistake of paying more on both so far until I watched this. Even though BMO doesn’t have a quick principle payment option outside of calling them, I’m still going to call them every month now to make that additional principal payment because I caught on after 5 months of overpaying that they were only reducing my due amount from the next payment and not decreasing my principal at all! Thank you for helping me catch this early on as we tread the path to debt free!

@EJO_VZN 3 года назад

You learn something new every day! I was about to make an extra payment on my car loan, something I do often. I noticed for the first time that it was asking me if I would rather make a principal only payment. I didn't know that was, so here I am :) Thanks for your information, liked and subbed. I'm grateful that I can take a good habit I already had and build on it!

@nicolek.1839 2 года назад

Same here!!! I’ve been paying a couple hundred beyond my minimum payment assuming the bank was moving the extra funds to the principal. I kept seeing the principal only option but kept ignoring it. What a fool I was!!!!

@lebrongainss 3 года назад

Truly an angel! Best video and visual description ever.

@ShotByDru_ Год назад

This explanation was perfection!!! Thank you for putting this together man you have no idea how much you’ve helped me!

@andreaarmenta3659 4 года назад

Great video!!! Really helped me out with understanding more about principal!!! You the man!!!!!! Gracias amigo

@DiamondEdwards 4 года назад

Thank you for the kind words. I'll keep videos coming.

@Sharon-jw9rz 4 года назад

Most importantly, thank you for making a video that gets straight to the point. Thank you also for the resource, examples and your own personal example. All this time, I thought I was hitting the principal. Now I know!

@DiamondEdwards 4 года назад

Thank you Sharon for the kind words. That is exactly what this channel is about and you are the perfect example of the type of people we need in this community. So, if you haven't done so, subscribe and turn on your notifications because I have a lot more on the way! Thanks again😀

@Jon-nz3dm 3 года назад

You are awesome. Subscribed. 2 videos in and you are already one of my favorite financial youtubers by far. Keep it going.

@DiamondEdwards 3 года назад

Wow, thanks! New video dropping tomorrow Feb 24 @0800

@arneciag7405 3 года назад

Thank you so much. This video was SUPER helpful! I appreciate the visual graphics with the examples, it made understanding much easier than other videos.

@DiamondEdwards 3 года назад

Glad it was helpful! I'll have to add in visual in more of my videos. Thanks for watching.

@VinceLymburn 3 года назад

This was such a helpful video! I was just adding money to my monthly payment each time. Did not know the interest was doing that to me. Going to start adding in an extra principal payment every month now!

@DiamondEdwards 3 года назад

Get after it my guy!

@MoniqueMakesULaugH 3 года назад

Great, informative video and I like the visuals ‼️I’m glad the bank that financed my car has a payment AND principal online option🙌🏾

@DiamondEdwards 3 года назад

Glad it was helpful 💪!

@maryannrodriguez3907 11 месяцев назад

Watched a few videos and nobody made sense like you did. Keep up the good work! Subscribed!!

@abdelazim123456 6 месяцев назад

I was digging over videos to understand the difference between principles and regular but your video explained it way better. Thank you so much.

@covinapee1977 3 года назад

What a blessing this is!! This video is right on time for me. I was just about to double up on my car payments next month. RU-vid suggested your video in my feed. After watching this I will be paying on the principal.

@DiamondEdwards 3 года назад

I'm glad it connected at just the right time!

@CloudGuerra 3 года назад

Thank you for the clear explanation and graphs. A solid teacher!

@DiamondEdwards 3 года назад

You're very welcome!

@BriceBriceBabyy 2 года назад

I have been looking into this a lot online and I have to say... This is BY FAR the best video of its kind on this subject. Thank you!

@DiamondEdwards 2 года назад

Thank you, it means a lot!

@lesiadancer1757 4 года назад

Wow! Smart and Amazing! My husband and I are definitely going the principal way! Thank you! Best video on RU-vid hands down!!

@DiamondEdwards 4 года назад

Wow, thank you Lesia!

@cultconfrere 4 года назад

thank you for this video - it was super informational. i made a car purchase this year and i rushed the process. i owe more than i thought i was led to understand. however, although i plan to practice some pro activity in my life I am very much a reactive person. the knowledge in this video has now given me a killer concrete plan and it's gonna be worth it. much appreciated.

@DiamondEdwards 4 года назад

Thank you for the kind words. I am glad it helped and I know you can kill it. Stay focused!

@kadieolson1870 4 года назад

Great info! Thanks for sharing this. I always pay a little extra on our payment but from now on I'll pay it separate as a principal only.

@bettyvolmar6605 10 месяцев назад

I had to stop in the middle of the video and just complement this gentleman because the way he explains things he goes down into details and break it down for people that are not aware they have no knowledge of certain things. It doesn’t matter how old you are, and I’ve been listening to the same topic on RU-vid all day, and I finally found a video that I can pretty much understand clearly that’s just not rushing to it and I appreciate that so kudos to you and I would like to see your other videos. Thank you very much I appreciate it.

@ronilegause1353 6 месяцев назад

Thanks for the clarification and the visual. It makes more sense now!

@Kiaras_YT 3 года назад

You did an EXCELLENT job of explaining the principle payment method.

@DiamondEdwards 3 года назад

Thank your Kiara😀

@el8370 3 года назад

This is one of the most clear videos I've seen....showing numbers for both sides......great video my friend....thanks for the info.

@DiamondEdwards 3 года назад

You are very welcome

@patriciaortiz4421 3 года назад

Thank you so much for explaining this and the visual. Made it easier to understand the process. Bless your heart

@DiamondEdwards 3 года назад

Glad it was helpful! Thank you!

@gabriellederr4408 3 года назад

I don’t normally comment on vids but you made this soooo easy to understand!! Keep doing what you’re doing!!

@DiamondEdwards 3 года назад

Thank you! Will do!

@k_escobar917 4 года назад

Knowledge is power! You said it best man. Wish I knew this before sending in a big payment towards my monthly payment. The good thing is I now know better how principle and interest works and I technically dont have a payment til October 2020 lol. I'm gonna send the extra payments as usual but for the principal balance thanks man.

@DiamondEdwards 4 года назад

Your on FIRE! What will you use all that new found money once that payment is out of your life? IRA, next car, savings, investment property?

@tiannabenjamin6649 4 года назад

I would like to know how you went about making only a principal payment? My bank does not give me an option to make principal only payment when paying online.

@godschild2219 5 месяцев назад

@@tiannabenjamin6649 did u end up getting the answer on this

@jasminechavis4213 4 года назад

Wow thank you so much for this information. I’ve been trying to figure out how to pay my car down faster. I realize making the extra payment is my problem.

@DiamondEdwards 4 года назад

Glad it was helpful!😀

@WhatnGayH 3 года назад

Very useful information. And yes the visual graphics was very helpful in driving your message. Thank you!

@longlong7682 3 года назад

I'm learning so much. Thank you so much for these videos!! You have a gift!

@DiamondEdwards 3 года назад

Happy to help! Thank you for your kind words 🙌

@ozkarwinter8124 3 года назад

My finance charge is $11,000 for a $20,000 car 💀 72 months to pay it off at $448 monthly. I had no idea this was my grand total until I looked over some paper work! It’s my first time purchasing a car. I’m Hoping to send money in as a principal only to avoid losing out on thousands 😪

@DiamondEdwards 3 года назад

That would be your bet assuming you don't any gotcha's in the loan terms. Principal payments all day. A tough lesson for but we should always look at the total cost of the loan before we sign on the dotted line. You may find this video interesting ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EL1IlyEf0-k.html

@FlexSZN23 3 года назад

Refinance the loan.

@diz354 4 года назад

🔥 I’ve never heard of this method I’m gonna see if I can do it this week

@DiamondEdwards 4 года назад

@Dizzy Roth The best part is your have to double your payment. Any extra on the principal will help. Check out my video in the pinned post to see it in action.

@Londonn.GriseldaTV Год назад

Idk if it’s because I understand certain aspects of math in which helps me optimistically look at it easier like; independent and dependent variables for example but this makes so much sense !! This video deserves a million likes 🙌

@aplacetorambleon 2 года назад

Wow!!!! I need to start doing this!!!! Thank you for this video!!!!

@pabloa8961 2 года назад

Amazing content! Keep up with this great videos. Just one question: the only benefit of the “extra payment” approach is having the “peace of mind” of not being forced to pay next month, correct? Otherwise I do not see other reason for using that approach over the principal payment path. Thank you!

@captainxjiggle4796 Год назад

Super helpful diamond, I really appreciate you man!!

@EvyDiane Год назад

Wow!! This video was incredibly helpful. I just purchased my first car less than two months ago and will begin making payments in March. I want to pay it off as soon as humanly possible so I can get out of debt like you mentioned but I really wanted to see the amount of money it saves by paying the principle. So thanks for showing me that. Also, thank you for the last tidbit about saving at least one month of car note for some cushion. I genuinely didn't think of that but it's genius!! Thank you thank you thank you!!

@southernbelle850 4 года назад

I've watched 3 videos before this one with people yapping about Dave Ramsey and didn't explain jack.. I learn in the way you just explained everything.. the side by side was perfect.. 👍

@DiamondEdwards 4 года назад

I appreciate that and hope it helps you get it paid off faster!

@sfcrmsa 3 года назад

Principle payments work the best for me. Like you said either is good, the quicker the better because the banks, credit unions, lenders and other financial institutions are not in best interest in you saving money.

@theaudaciouslifeofalliej.9021 3 года назад

Thank you for this clear and concise explanation of efficiently paying off a car loan. Just earned yourself a new subscriber 💕

@DiamondEdwards 3 года назад

Awesome, thank you!😃

@theresabennett915 Год назад

Thanks for the tips. Excellent advice. I will make sure I will start telling them specifically principal. Blessings!

@poincianacouponing1622 Год назад

Thank you for this. Most of us have parents that are either financially illiterate or learned all this the hard way yet never felt the need to pass that info on. This helps SO MUCH!

@keishadrake3422 3 года назад

AMAZING 😳KNOWLEDGE IS POWER ..WISH I KNEW THIS 4 YRS AGO 😔

@victoriae2530 4 месяца назад

Thank you for this knowledge. Answered my question!

@AlecWyld 2 месяца назад

Thanks a lot for this info man. I took what I learned from you here and came up with a comprehensive budget and repayment plan.

@KickinItWithTea1111 3 года назад

Wow, thank you for breaking this down! You're truly a gem because some of us never thought nothing of this. All we know is how to make an extra payment toward the whole loan balance! Moving forward I will apply this method in the future making 1 payment toward principal and 1 toward the loan! #newsubbie 🔐🔥💯

@DiamondEdwards 3 года назад

You're so welcome!

@jelissadelee3447 3 года назад

Thanks for breaking it down so easy, I had 97 honda for 5 years but had get a new car. Sept 2019 bought first car at 23 found 2016 kia at 24k miles for $10k. My payment is on the 1st month and during the month recently I am making as many principal payments $234 or more. I'm trying get it paid off by next summer if not early. I miss not having a car payment.

@DiamondEdwards 3 года назад

Say that last part again for the people in the back! Sounds like you made a wise and reasonable purchase. Keep this up and you'll be saving, investing and building wealth in no time if you are not already! That is what this channel is all about. Welcome to the community Jelissa😀!

@jelissadelee3447 3 года назад

@@DiamondEdwards Thank you! It was reasonable cause I don't have fancy gadgets like backup camera, blind spot sensor and all that. Wouldn't change my decision one bit

@nalla9398 7 месяцев назад

This was an AMAZING video! so informative thank you!!

@biancajohnson182 Год назад

Thank you for this video. Knowledge it power!! 🙌🙌

@brandieceasar5258 3 года назад

Wow I’m so glad I watched this! I can’t believe in 2 years we’ve paid almost 3k in interest 🤢 Calling my bank tomorrow! And the car isn’t even paid off yet

@DiamondEdwards 3 года назад

Right one year I paid $1900 in interest. I'll be paying cash for any car I purchase in the future. I work to hard to gave these people my hard earned dollars!

@2000rayc 3 года назад

@@DiamondEdwards so if my car is only 23k left. and the intrest was 16.4. and i have the money to pay that 23 k. can i do that or do i still have to pay intest. payments havent started yet

@2000rayc 3 года назад

and if tats the case. should i do a co-sgin to bring it down. then pay? i have money to pay what the car really cost. but can i avoid that interest if i give 23k.

@darkstar4982 3 года назад

Thank you so much for this !!! Have been trying to trade in my car for my dream car but everyone tells me I am upside down right now. My loan for my current car (Nissan Altima) is 12,402 but the value of my car is 8,000. I want a Dodge Charger RT just because it’s the only car I want and I would much rather have a paid off Charger. So I will be making these principal payments and hopefully that lowers my loan so I can get out of this car already.

@DiamondEdwards 3 года назад

Just like relationships, never bring old baggage into a new relationship or it would work and your wasting everyone time. Only with cars your wasting money! Get your car paid off, get any other debts paid off and start investing. Before long you will have the cash to buy and drive whatever you want with no payments.

@oledarbyd586 3 года назад

Very informational. I wish I had known this before I purchased my car. Thank you so much Diamond. Keep them coming.

@Beautifully_Chaotic3109 2 года назад

This was phenomenal! thank you for the examples because it was so simple. I am so grateful I found this! Sharing immediately!

@DiamondEdwards 2 года назад

Thank you!

@shavasiacoleman6656 3 года назад

I pay my car note biweekly. It's due monthly. I also pay $200 to the principal once a month.

@DiamondEdwards 3 года назад

That's the equivalent of one extra payment a year and $200/month towards your principal. You definitely saving yourself some money in interest. Keep up the good work💪

@mariot7403 2 года назад

@@DiamondEdwards have a question they charge interest on principal payments too?

@rodrigohoyos319 4 года назад

I just bought my car two days ago and you sir have honestly helped I had to take out a $11,000 loan because of the interest rate but thanks to you that loan will be gone in a year .. two thumbs up to this video it’s something everyone should see

@DiamondEdwards 4 года назад

One year, that is great Rodrigo! Thanks for supporting our channel and share this video with a friend to help spread the word.

@romanc.5074 10 месяцев назад

Wow, wow, So many videos I have watched about how to pay for your car and I have not heard a bit about extra or principal payments. Thank you very much.

@lk808 3 месяца назад

Very helpful, thank you! I learned something I didn’t know

@Kadirguler27 2 года назад

That's excellent but there's a big problem of marijuana smoking in rentals these days. Have you had to deal with that and how do you prevent it? The smell of marijuana is really hard to get out of the cars and the vents It makes it hard to rent the car to someone else afterwards *850 tycoons repair*

@benchavez2056 2 года назад

Great explanation video, absolutely true about banks pushing next due date to maximize their interest payments. Now I know that I must call the bank and tell them to apply extra payments towards principal because there is no option to make principal only payment online or at bank branch. They are too sneaky in the name of profits. Again awesome and thorough video, I greatly appreciate your efforts sir.

@michelleshine1122 3 года назад

Just made a principle payment! Thanks for the info!

@santosavila4495 Год назад

Hey, brother thanks for this knowledge you’re feeding into my brain!

@brownsuga929 3 года назад

Im soooo much debt i can't sleep at night. But I'm trying to come up with a plan. You REALLY helped me understand this principle vs payment thing!! New Subscriber here!! Thank you!!

@DiamondEdwards 3 года назад

Welcome to the community! Getting out debt can be very challenging but you can do this. It requires you to make some really tough and uncomfortable decisions. Surround yourself with voices of people talking about where you want to be and stay focused. I had a $100k in debt before I woke up! Check out this playlist I put together it has some good information without any fluff. Reachout with any questions you may have either here or IG @diamonddedwards. ru-vid.com/group/PLdKOWk-Vo99x5f7ohkrIHy4_uzOLyW27m

@brownsuga929 3 года назад

@@DiamondEdwards thank you!! I actually do have a question my car was just repossessed and I have the money now to get it back but I'm wondering does it make sense to get it back and start trying to pay it down? I need my car for work. I was about to be stupid and get another car instead but saw your video and said no no no lol.

@DiamondEdwards 3 года назад

Hey sorry for the delayed response. I try to get to every comment ASAP. If it was me and know what I know about how repossessions this is what I would do. I would work with the lender to get it back and try to negotiate out any fee associated with the repossession. HOWEVER, if I know I still was going to have trouble making the payment, I was start looking at ways to sell it and cover difference. It is much better if you control the sell of the vehicle vs the lenders. They are coming after you for the difference so they don't care about getting max value out of the vehicle check out this video for more information and options. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-UfTqCwOjgOI.html Thanks for supporting the channel.

@brownsuga929 3 года назад

@@DiamondEdwards thank you for getting back with me. I got it back yesterday and I work full-time as a nurse which used to be a stable field but now everything is caught in a glitch. Anyways I humbly thank you for your informative videos and I'll go check that video out! 🙏🏾❤🖤💚

@LibraChick43 3 года назад

@@brownsuga929--- Congratulations on getting your car back!!!!! Best wishes to you and stay safe!!!!!

@Ph.Tran88 4 года назад

Whoaaaaa thank you! Learned so much from you

@DiamondEdwards 4 года назад

Thank you Stacy! It's these comments that keeps me coming back. Don't forget to SUBSCRIBE!! More hot tips coming every week!!!

@adrianacosta807 Год назад

Thank you , i hope this video goes out to as many as possible

@tuffluck83 Год назад

Bro this is my first time ever doing this car note thing and I was trying to figure out strategies to get my note paid off quickly and after watching this I now know that principal payments are more beneficial thank you 🙏🏾

@sunshineperez5532 3 года назад

Do you recommend paying your car payment a few days early ? If so , by how many days in advance and how many days after should you pay principal? Thank you for your information. Your videos are so helpful . New subscriber 😀

@DiamondEdwards 3 года назад

No not really. Make your regular payment and make additional payment as you can throughout the month or save it all and make one big principal payment. When does not matter nearly as much as how much and how often. One month I make 5 principal payments. My goal was to get it paid off as fast as possible to get my hands on that pay raise which is what it feels like once you pay off your car.