Monday, March 17, 2008

car (or house down payment?) paid off!

I am so happy that I finally own my car tonight after the final loan payment is made.

I bought the car back in March 2004 and was almost done with it (around 2k left) by Nov 2005, until I decided to take out a $5,000 loan against my car (as a collateral) to pay for some of my house down payment. The reason I did that is that the mortgage payments would be much lower, and a collateral loan using my car was only 3% through the Think Credit Union in Minnesota. The mortgage rate is 5.625% so there is obvious savings there.

The car/collateral loan was around $330 monthly but I decided to pay $500 monthly to make the life of the loan shorter. Starting last January, I increased the payments to $700 so the loan would be paid off in March. The payment is made from my US Bank checking account automatically on the 17th of every month. So I was expecting to see $200 deducted from the checking account because that was what's left on the loan.

No. By checking my US Bank account, I saw $700 deducted on the 14th of March! I called the Think CU rep and she told me that the automatic payment system is not smart and it does not know how much what is left on the loan. And that she had to fax me the form to authorize the cancellation of the automated payment!! Wow. I am not pleased with all of this extra work just to stop the $700 a month payment even if the loan is paid off!

What is even worse... she cannot refund the money back to my US Bank account. She has to mail me the check.

Ugh. At least the car is mine after today... so I guess in a sense, my house down payment is also paid off today.

1 Comments:

Blogger MattG said...

Hi Pam. Congrats! Debt is so oppressive, and eliminating it is so liberating! Very cool.

11:39 AM  

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home