If you make your regular minimum payment, is it possible to request that the overage paid to go toward the Principle amount due, and not be applied toward paying them further interest?
I know you can specify that when making home mortgage payments, to speed up paying off a mortgage loan. Can this same technique be used toward credit payments???
062107 7:45
Possible to ask creditor (MC/Visa/Dept. store) how to apply payments?
yes.... and your credit card company will do it without you even having to ask.
For example, your get your statement, with interest charged of $20, and an ending balance of $400. Your minimum payment is $30. If you pay $100, they apply $20 to the interest, and $80 to the balance. Your new balance is $320.
The reason you have to tell a mortgage company how to apply additional funds is because they also have an escrow account for paying your taxes and insurance. Without you telling them, they don't know whether to apply the extra to principal or escrow.
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