Paying Off Car Loan Early | Principal vs Extra Payment Explained

[@DiamondEdwards]

Check out my video kzbin.info/www/bejne/hKC7eaWZmb98qqs 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]

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

[@DiamondEdwards]

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]

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

[@JeonGregory]

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

[@vickyf1051]

@@dawneishahill3900 no its veh loan

[@jeffalex]

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]

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

[@jeffalex]

@@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]

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

[@kimberlywinkfield876]

@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]

Ok, what? I need to do more research 😩

[@TheOnlyJu305]

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. 😂

[@lockedandloaded9816]

😂😂😂

[@manoloanleu1720]

The 3 people who disliked this are car dealers and banks

[@DiamondEdwards]

😂 Couldn't have said it better myself. 😅

[@sorayabaudin1657]

Exactly

[@2000rayc]

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]

Hehe🤣🤦🏾‍♂️

[@2000rayc]

@@anglin904 he he?

[@griselleisara3799]

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

[@ConsistentlyHealing813]

Did you pay it off?

[@nathanmann9200]

😂😂​@@ConsistentlyHealing813

[@korruptcontent954]

I'm going to be doing some principal payments. I cannot have this loan on me for 72 months!

[@VictorMartinez-dv6md]

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]

I agree with this so much.!!!

[@Wilde_Childe]

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..]

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]

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

[@dboulier54]

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

[@ntoomey2147]

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]

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

[@427skies]

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

[@georgiafearnley8696]

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]

@@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]

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

[@donnamariegayle194]

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]

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

[@thatoneginger7530]

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]

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]

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]

@@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]

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

[@PhilMarshall91]

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

[@salvadorllerenas140]

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]

I appreciate that!

[@gladiator_games]

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

[@waterheaterservices]

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

[@misterjoey3384]

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

[@DIDDYTBABY]

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

[@peppaminttea]

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

[@DiamondEdwards]

Thank! For all my visual learner out there!💪

[@2000rayc]

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]

Subscribed for that reason

[@steveagomez7]

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

[@brandonberg7703]

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]

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]

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

[@bootyodor4555]

you need to refinance like yesterday lol

[@brandonberg7703]

@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]

@@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.

[@foreversmoov102]

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

[@lakishareaves]

Same here

[@nicolek.1839]

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.

[@edwardmoore9959]

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]

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]

@@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]

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]

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]

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?

[@alikayosan1692]

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

[@DiamondEdwards]

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]

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

[@pbj0815]

Same 😖😖😖😖

[@pacs0508]

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]

@@pacs0508 criminal system

[@TheJUiCy1117]

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]

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

[@nicolek.1839]

Same same same!

[@txmomoftwins02]

LOL I feel your pain

[@gundeminnotlar4841]

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*

[@Haktendoo]

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!

[@felesiaawang705]

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

[@2000rayc]

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?

[@RalphJErvin]

This should be required before any student can graduate from any high school in America. Brilliantly explained.

[@joshpeeler9464]

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]

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

[@HeyItsJay24]

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]

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

[@Sean-Adventures]

@@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

[@TotalHealthJunkie]

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

[@DiamondEdwards]

Always verify your payments were applied correctly!

[@pbj0815]

@@DiamondEdwards how???!

[@ozkarwinter8124]

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]

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 kzbin.info/www/bejne/e32Uep-vestjY80

[@FlexSZN23]

Refinance the loan.

[@anntigonnesekhmet8448]

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]

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

[@sacha242]

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.

[@gabriellewilliams1048]

POWER OF PRINCIPLE PAYMENTS! Thank you.

[@JC-jj6qi]

I just made my third payment on my car, and this video really helped understand how to better plan ahead so that I pay less in interest. My Interest is a vicious 16% and I wasn't sure which route to go. Payment plus principal seems best. Thank you!

[@brandieceasar5258]

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]

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]

@@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]

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.

[@tfriend8223]

Thanks for this information. I just purchased a new car that I want to pay off quickly. I will pay towards the principle. I hope this works for credit cards too.

[@itskaylaelizabeth2227]

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!

[@naheerameer8268]

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!

[@adejahmichelle]

Right now it’s paying more than the minimum payment .. glad came across this video!

[@DiamondEdwards]

Thanks for watching. Hit'em where it hurts! Any extra is good just make sure it is going towards the principal.

[@gussta1]

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]

I appreciate that!

[@smoothkk1]

I just started my path 2 weeks ago on paying off my 18K debt by the end of 2023 and your videos the last few days have been very helpful, insightful and motivating. I make 90K a year and can afford to do it but I have been using that as an excuse to why I can push it off. No more playing games. I appreciate your videos

[@sfcrmsa]

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.

[@AmericanPatriotANomad]

Both if possible

[@shavasiacoleman6656]

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

[@DiamondEdwards]

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]

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

[@el8370]

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]

You are very welcome

[@keishadrake3422]

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

[@SimplySammy923]

I just checked my account and I’ve been Mrs. Extra for 2 years. I just noticed a principle only payment now. Going to use that only from now on. Thank you so much.

[@poincianacouponing1622]

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!

[@abdelazim123456]

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

[@cultconfrere]

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]

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

[@fennygypsy]

2 years this information utterly changed my life FOREVER ❤...It was my home run 💯

[@covinapee1977]

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. KZbin suggested your video in my feed. After watching this I will be paying on the principal.

[@DiamondEdwards]

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

[@round0fApplause]

Thank you, im a young new car owner and you taught me more than any school.

[@rodrigohoyos319]

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]

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

[@challo1976]

Great info .. I bought a car in 2023 and yes I was making the extra payment😮. Now i will be putting that extra into principal😊

[@darkstar4982]

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]

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.

[@ghw1985]

love how young ppl like yourself are so financially savvy!

[@EJO_VZN]

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]

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!!!!

[@usausa3234]

I feel taken advantage! Thank you for this video!

[@k_escobar917]

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]

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]

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]

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

[@ChampionshipRingBaby]

Diamond, you might never read this but I hope you do. I just bought a car for way too much money and am having serious buyers remorse. It’s so bad that all day I felt like I was going to faint thinking about it. Your video has given me hope. Thank you friend, much love and light to you

[@DiamondEdwards]

Absolute I read this comment. I am sorry to hear about your car buying experience but I'm glad to hear you have a plan. If you want to speak in greater detail reach out to me on IG@diamonddedwards. Thanks for watching.

[@jelissadelee3447]

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]

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]

@@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

[@JennellHoward]

After watching your video I have complete understanding now. All this time I’ve been paying extra extra on car note…I have been paying on the wrong part…thanks a million

[@rokucam1958]

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!

[@Techniks2024]

Navy Fed does not have option to allow you to apply on payment to principal. Do I have to call?

[@VinceLymburn]

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]

Get after it my guy!

[@justme7595]

Thank you!!! This SHOULD be taught in school..

[@Kiaras_YT]

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

[@DiamondEdwards]

Thank your Kiara😀

[@Sumart4u]

Wow you have saved me cash...thanx!..knowledge is power!

[@brownsuga929]

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]

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. kzbin.info/aero/PLdKOWk-Vo99x5f7ohkrIHy4_uzOLyW27m

[@brownsuga929]

@@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]

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. kzbin.info/www/bejne/i5e3onathM-ahas Thanks for supporting the channel.

[@brownsuga929]

@@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]

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

[@SeanJ2A]

I prefer both. With my current car loan, I'm paid up 3 months. That gives me a cushion if anything goes wrong, but I also apply payments directly to the principal.

[@theresahouston930]

I agree, I did the exact same thing

[@Sharon-jw9rz]

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]

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😀

[@nintendonerd56]

“Posting this comment now so I can update it in the future” I just found your channel and have been watching and learning. I just financed a $30k Kia Optima (not my choice) bc of my situation all I could qualify for was that optima and I am trying to get the negative equity paid down so I can get back into a vw gti. Hoping that I can make enough principle payments to eat up that negative equity asap

[@kadieolson1870]

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.

[@jazmyntwitty4076]

Was financed for $15,900 in 2017. I just looked and saw I have paid $14,105. $6,200 has gone to interest while only $7,700 went to principal. 😫Before seeing this video, I’ve been doing the Mr. Extra method for 4 months. Going to try the principal method for sure

[@DiamondEdwards]

The banks get their money off the TOP! Follow Mrs. Principal and you will knock out this loan quick.

[@MoniqueMakesULaugH]

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]

Glad it was helpful 💪!

[@meganlovesresearch5944]

Omg, I never knew this and you are so right. I called my bank and they said that the only way I can even pay on principal amount is by going to the bank IN PERSON because they don’t do it over the phone or online. Only in person or sending a cashiers check specifying that you want it to go to principal. THANK YOU!!

[@poincianacouponing1622]

Wow.

[@andreaarmenta3659]

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

[@DiamondEdwards]

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

[@migueltrevino814]

I feel more comfortable and confident on making my first car purchase because of this video. Thank you so much! Keep doing these videos. It’s a great way to teach us newbies 😂

[@necelashawn7850]

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

[@DiamondEdwards]

Wow, thank you!

[@josuediaz4646]

I started using principal method, and I am projecting to finish paying my car loan at the end of this year, I been with my car since last April 2023. Thank you so much for sharing your knowledge with us. 👍

[@diz354]

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

[@DiamondEdwards]

@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.

[@rtsunlimitedcable]

Thank You! I paid off my car in 3.5 years 1.5 years earlier with NO penalty. Thank you

[@CloudGuerra]

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

[@DiamondEdwards]

You're very welcome!

[@vicreyes9237]

I just got off the phone with the loan officer lady. And she insisted I just make extra payments instead of principal only.... thank you for this knowledge homie

[@DiamondEdwards]

The student becomes the teacher! Good job for standing up for your dollars.

[@KickinItWithTea1111]

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]

You're so welcome!

[@roseaneflynn9534]

Principle plus regular monthly.

[@loo7333]

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*

[@bettyvolmar6605]

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 KZbin 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.

[@peachmenu8923]

Can you talk about how to actually apply your money towards the principal? Like if I am dropping a check off at the bank do I write on the envelope or check "principal payment"? I've always been confused about that lol.

[@DiamondEdwards]

Varies by lender but you do have to inform them it's a principal payment. Some banks let you just click a button and others make you mail a check.

[@lashawnb7137]

What if they do not have principles payment

[@laurynyounge9297]

I have been doing it wrong this whole time 😫 just called my bank to see how I can apply principal only payment

[@DiamondEdwards]

Glad you caught it. Maybe see if they will go back and correct some of those payments. They may help you out. Either your on the right track now. How long before you that bad boy paid off?

[@thomaslara8246]

Got 3.4K left on my car, planning on chopping it in half by the end of the year. Thanks for the video really helped

[@DiamondEdwards]

No problem 👍

[@pabloa8961]

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!

[@shirlysmilesmusic6919]

Thanks for the info. I am gonna try and send in extra money towards principal on my new car loan. Thats how we paid off our house and it was the very, best, thing we ever did!

[@benchavez2056]

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.

[@npg1989]

I am starting my journey on buying my 1st house. I have a check list on what to pay off 1st this car payment needs to be paid off. Thank you for this video!

[@DiamondEdwards]

Best of luck!

[@MariaJeanLimaBean]

Principle payments👌🏽

[@tacomagrayghost]

Just be careful when paying your additional principal early and then you will see a lower monthly payment which you will want to pay too; but if you dont do both religiously your monthly will go back up close to your original monthly. They will tempt you to pay the min. after paying extra on principal and if you just pay the minimum for that mo. your not saving ass much as you could by being consistent on paying principal and your monthly due. This has been my experience at least. Thanks for the great video

[@DiamondEdwards]

Banks can be tricky, thanks for adding value to this channel. Regular payments ALWAYS, principal payments as you can!

[@Edwingutierrez713]

Easily one of the best videos I’ve ever watched on KZbin

[@DiamondEdwards]

Thank you Edwin

[@yelisbetlucero9955]

I'm still a little confused 😭 how do I make a principle payment? I have schools first credit union Bank i do everything online and I dont see an option to pay towards the principle? I took a loan out for $36,044.66 monthly payments are $536.89 I made a payment of $44.66 just so I could see the balance as a rounded number and it never went down it said that I paid $44.66 to the instrest then on my actual payment date I paid $550 and my balance only went went down by $430.. I'm so lost

[@DiamondEdwards]

This is what I was talking about in the video. If you don't direct it toward principal, interest will be deducted. Had that been a $44.66 principal payment your balance would have dropped by that much. Remember interest accrues daily on a auto loan. What they did was applied that $44 toward the interest that was due up to that date. Then when you made the $550 payment you paid the interest that accrued between payments and the remainder $430 went to the principal balance. To calculate your daily interest divide your interest rate by 365 and times that by your balance, then times that number of days in the month. This is how much interest you will pay that month. Ex: 5% interest 0.05/365=0.000136*36044.66=4.90*30=147.06. In this example $147.06 is what your would pay in interest in the next 30 days. You have to call them directly to find out their policy for making principal payments.

[@allwhowander78]

I've paid off multiple vehicles with the principal only method and I should have this next one paid off in four months doing the same thing. What I needed help with was seeing how the interest is affected by utilizing this system so I appreciate the visuals.

[@DiamondEdwards]

Nice! If everyone understand how interest affects their loan they would stop borrowing. I show it from a different angle in this video on amortization schedule here kzbin.info/www/bejne/qJnOlGimq7aSn6c. Thanks for watching and sharing!

[@rooseveltday6687]

Part2 And what if I cannot afford "double"payments?? Is it worth paying at least something on the "principal" payment???

[@DiamondEdwards]

Anything helps. I used double payments as an example for easy math.

[@CharlesElliott-q8j]

This really helped me understand the different and power of paying toward your principal, I’ll need to start doing this so can get my car paid off!!!! Thank you so much sir!