When I was filling out the paperwork for my car the other day they told me that because I live in PA there wouldn't be a penalty if I paid off my loan early. I asked this because I like to pay more on my debt whenever I have the money. It makes sense.
What doesn't make sense is that any financial institution would penalize you for paying off your debt in a shorter term than originally stated.
WTF is up with that?
That's kind of wrong.
In a day and age when more people are defaulting on loans everyone should be happy to get things paid off.
Penalties for paying off a loan early.
That's just nuts!
Poetry Sunday
3 days ago
Itchy
199? - July 21, 2008
1995 - August 27, 2009
1993 - Sept 20, 2009
6 comments:
I had that with a UK car loan once; there was an extra penalty for early repayment. Seemed very odd. I left £1 in the account until he final due date.
Whatever will get them more money.
They make more MONEY out of you if you pay it off over the whole time, that's why! Yes, it's madness... :(
Never heard of that for a car. But you definatly have to watch out for that on a house loan.
Same thing happened with my student loans. I was very confused when they reassured me I wouldn't be faulted for making extra payments if I wanted.
I don't understand that either.
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