Pay Half a Car Payment Twice a Month?
Dear Driving for Dollars, My interest rate on my car loan is high, and I can't refinance. Can I really save money by making half of my car payment twice a month? -- Chuck
Dear Chuck, This is a great idea to help you save money and effectively lower your interest rate, but make sure your lender allows making half of a car payment. The amount you will save depends on your interest rate, how much you owe and the amount of time you have remaining on your car loan. To see the savings, use Bankrate's biweekly mortgage payment calculator and enter the numbers associated with your car loan.
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