One important thing to keep in mind is that, in addition to reducing the amount of interest paid on the debt, you will also repay the debt sooner, freeing up extra cash at the end.
Use a Lump Sum to Pay Down Debt
Use a Lump Sum to Pay Down Debt
Monthly Payment |
Total Interest |
Months to Pay Off |
|---|---|---|
| $ 250 | $ 15,147.70 | 131 |
Monthly Payment |
Total Interest |
Months to Pay Off |
|---|---|---|
| $ 250 | $ 5,529.15 | 73 |
By making a lump sum payment, you will repay your loan 58 months earlier and save $9,618.55 in interest charges over the remaining term of the loan.
| Current Plan | With Lump Sum Payment | |
|---|---|---|
| Total Interest | $ 15,147.70 | $ 5,529.15 |
