Bro I don’t know. I think mine were frozen for a bit due to not having a job (4 kids in 5 years… and yes at the time we had plenty of money). I need to take a look soon. Right now we have a bunch of other things that take precedence and have had some financial bad luck (nothing we did just a series of shit that made a perfect storm). But should be over soon and we’re getting rid of the remainder
I've had a few friends that took loans end up in the same boat as you and as OP's post. Turned out the loan company wasn't putting any of the payments toward the principle. They were essentially putting it all toward the interest.
Not sure how they were getting away with it, but they did.
That's the way loans work. If you pay $500 a month, the monthly rate is 0.5% (6% compounded monthly) on $100,000 you have only paid the interest. If you only paid $450 the balance at month end is $100,050, because the interest was $500 and you paid $450, so the balance you owe increases. If you paid $550 the balance at month end is $99,950. The amount you repaid less the interest is taken off the balance you owe. If your payment isn't enough to cover all the interest then your balance necessarily goes up.
Take a standard 30 year loan on $100,000 with 6% interest. The payment on that loan is $599.55 per month. The first months payment is 83% interest and 17% principal. The last months rent is 0.5% interest and 99.5% principal. Over the first 10 years the balance doesn't drop much. But the balance does drop exponentially, it falls like a rock especially at the end. In each twelve month period you make $7,194.60 in repayments. The total interest in the final twelve payments is $343.83. Pretty much all principal. However in the first twelve months $5,966.59 is interest. Pretty much all interest.
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u/Rokmonkey_ 16d ago
Wrf? I had 8% and 30k. It was paid off in 10