Save Money On Your Car with a Vehicle Payment Calculator

Using Debt Wisely

It is sometimes possible to get emotional over the issue of debt. When you find yourself over your head in debt and unable to make your monthly payments, it is easy to blame credit for the problem. While a vehicle payment calculator can help solve the problem, the truth is that access to credit and the wise use of debt is a fundamental strength of our consumer-driven economy.

The key word here, however, is wise. Many people don’t understand debt and the interest costs associated with it. They have never used something like a vehicle payment calculator. That lack of knowledge means it is impossible to be wise about it. When we finance an automobile, it helps us get our transportation when we need it. That is a good thing about debt. However, that doesn’t mean we have to be a slave to a 48 or 60 month car payment on that debt.

Using a handy car loan payoff calculator can quickly show you how to get out from under that debt burden on your automobile and save hundreds or thousands on interest costs in the process. It is as simple as understanding a few facts and then using a payoff calculator to reap the rewards of that knowledge.

Understanding the Principles

The first thing to fully grasp about interest is that it is based on the amount you owe, or “the principal.” If you buy a car on a $25,000 note, that is your original principal. A car loan payoff calculator then determines payments based on certain assumptions. For example, there may be a 12 percent interest and 60 months to pay it off. That gives you a monthly payment of $556.11. For each payment, a chunk of the monthly amount goes to pay interest, not to pay off your car. That interest also assumes you owe the money for that payment for a full month.

The powerful insight is if you use the lender’s money for a shorter period of time, you owe them less interest. In other words, if you reduce the principal of the loan, you save on interest costs. So the key is to get the amount owed as low as possible, as fast as possible. You can do that by paying half your note twice a month, or on paydays. It is also wise to add a little extra with each payment you make.

Get Motivated by Using a Vehicle Payment Calculator. Half A Payment™ shows you the power of applying these concepts to your car loan. Their car loan payoff calculator lets you put in the assumptions and immediately see just how much you can save and how quickly you can own your auto free and clear. Those are powerful motivators.

Don’t feel bad about your debt. Be a wise consumer and don’t let debt control you. Check out the payoff calculator and get motivated today!