Add a few dollars more a month, pay it off quicker, and save money!
Save money by making larger payments than you need to??!! That sounds like an oxymoron for sure!!
Adding onto a monthly payment to save money over the long term is a concept I’d heard of concerning mortgages, but somehow I didn’t connect it with anything else until I bought a car. Then my cousin, who was also buying a car, told me that “adding even a few dollars to the monthly payment, over time, adds up and makes a big difference”. Her suggestion is one of the most useful pieces of financial advice I’ve heard.
Following her recommendation is rewarding financially and psychologically: although not able to add extra every month, I will have my car paid off a few months ahead of time. That’s a relief to me!
Note: Please check with your lender to make sure you can do this. Some lenders penalize people who try to pay off their loans ahead of time!