Paying Off Car Loan Early | Principal vs Extra Payment Explained

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. Signup for a FREE 30 day trial of Audible from Amazon and listen to your favorite audiobooks: https://amzn.to/2y7Pi5A Related Video: Should you pay off your car early? https://youtu.be/g1bGw16mc-s Principal VS Monthly Payments Explained and Which is BETTER? 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 d