No. of Recommendations: 0
Hi everyone,
I'm fairly new to this board and I'd like to thank
everyone for all the great info and support. My credit
situation isn't too bad, but I'm hoping someone here can give me an answer.
Two months ago, my wife and I purchased a bedroom set and financed it through American General Finance Co. at a cost of $2118.53 @ 23.99%. (I know, should have bought it cash but the only other credit I'm paying on is a First USA Visa that'll be paid off by January). The question I have is this. My payments are $83.11 monthly and I paid $133.11 my first payment ($50
extra in principal or so I thought). But the statement I received today has an opening balance of $2991.96 and credited me $133.11 towards the principal. I thought if I paid extra each month, I'd save on interest but they seem to have tacked it all on at once. Is this how they do it, am I off-base or shouldn't I be able to pay down the loan the same as a mortgage, with extra principal each month. Sorry for the length of this post and thanks for any help...

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.