1/15/2010

The Truck Loan

Last week I posted a question that Jordan had about some vacation that his company wanted him to either take or have paid out.  After some really excellent feedback (thank you everyone), he decided to request the pay out and put it towards his truck loan.

His company works quick!  They paid him out yesterday, along with his regular pay.  He requested an even $500.  After deductions that worked out to be $341.60.  With his brother staying with us, he's decided to keep the $41.60 as he'll probably need an extra tank of gas and pay $300 towards the truck loan.

I've just completed the online request to make an additional loan payment  - the online system said that it can take up to two days to process.  Given that it's Friday morning, I won't call the bank until Wednesday morning (if it's not processed by then).

So lets have a look at the numbers:

Current Balance: $2,373.49
Less Vacation:         300.00
New Balance      $2,073.49

With an interest rate of 9.25%, of each $150 payment (bi-weekly) $141.10 goes towards the principal of the loan.  That means that there are now 13.82 bi-weekly payments left.  Rounded to 14, the truck will be paid off by July 29, 2010!!  Wow! Jordan will be complete debt free by this summer!
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14 comments:

  1. Is there an easy online tool to figure out how much of each payment goes towards the principal of a loan? Thanks!!

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  2. @ Jenn - I bet there is, but I'm not aware of it. My online statement shows me how much of the last payment went to principal and how much to interest. After each payment the principal amount will increase and the interest payment portion will decrease. I did my assumption based on the current numbers.

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  3. That's only 6 and a half months away! You guys can do it! p'-'q

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  4. Wow! 6.5 months to debt freedom! That's awesome! Go Jordan (and you) Go!

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  5. Yeah Jordan!! That's so great! =D

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  6. @ Jenn - You can use the amortization calculator at bankrate.com. It's designed for mortgages, but it will work. :) Let me know if you have questions!

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  7. Congrats!!

    I love that feeling of finally seeing the light at the end of the tunnel!

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  8. Way to go Jordan! It will feel awesome when you don't have that payment anymore.

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  9. Thanks :)
    It will be good :)

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  10. First visit to your blog. Very nice!

    Congratulations on paying down the truck. I just paid off my car 6 months early a couple of weeks ago. It's a great feeling!

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  11. good job on working down the truck loan, i paid off my car loan this summer and it feels SO good to finally be free after three years. you're almost there! :)

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  12. That is a great decision!! Congrats, will be done so soon. Yay! :)

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