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The "pay every two weeks" trick actually worked for my car loan
I had a 2018 Honda Civic loan at 7.9% from a credit union in Phoenix, like $14k left and the minimum payments were crushing me. A buddy told me to split my payment in half and pay it every two weeks instead of once a month, so I set up auto-pay for $175 every other Friday. After 8 months I checked my balance and realized I'd knocked off an extra $900 without even feeling it, plus I saved on interest. Has anyone else tried this with their loans or did I just get lucky with my timing?
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foster.jordan2mo ago
Yeah man you accidentally discovered the "magic of compounding" that Dave Ramsey yells about. But you're basically making an extra payment per year without noticing, that's why it worked. And 7.9% is robbery for a Honda loan, next time refi or buy a 2010 Corolla with cash like a normal person. But hey, at least you're not that guy paying minimums for 84 months on a Subaru with 0 down, right?
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the_jamie2mo ago
Feel for you man... that 7.9% rate really stings, especially on a Honda. I did the same thing with a used Kia a few years back, didn't even look at the interest until I was three years in and realized I'd paid like five grand extra. At least you caught it and started hacking away at the principal early. Some people never even check their statements, just let the bank take whatever it wants every month. You're miles ahead of the crowd just by paying attention.
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kai_webb912mo ago
That "magic of compounding" thing @foster.jordan said really hits on something bigger. It's like how every little thing adds up without you noticing, paying attention all the time is the trick. Same reason people who check their bank account daily waste less money on random crap, they see the pattern. You caught one small gap in how the system works and it saved you hundreds. Small habits stack up way more than big one time moves in my experience.
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