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Split payments

Glowpun

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What is the difference between making 12 full payments a year vs. 24 half payments a year? Reasoning?
 

OrphanSlug

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It impacts accumulated interest. Irregardless of the 12 or 24 payments in a given year, interest is usually calculated daily.
 

Exquisitor

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What is the difference between making 12 full payments a year vs. 24 half payments a year? Reasoning?

If you work and get paid every two weeks or if you're on SSI and get that monthly check.
 

ttwtt78640

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More frequent (or larger) payments reduces the total interest that you end up paying over the life of the loan.
 

Fearandloathing

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the difference is a LOT of interest



Well, there would be an interest issue, but at today's rates it wouldn't be a large amount. You are talking 365th part of the whole package over 14 days as opposed to 30.

The advantage is it doesn't take so much out in one hit. I figure its a gimmick to sell more cars
 

_Sal

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Well, there would be an interest issue, but at today's rates it wouldn't be a large amount. You are talking 365th part of the whole package over 14 days as opposed to 30.

The advantage is it doesn't take so much out in one hit. I figure its a gimmick to sell more cars
:lol:come on, who would do THAT...

I am cheap....a penny in my pocket is better than a penny in the banks...if you work out a mortgage...it is paid much, quicker and really is cheaper and it's the same money, it still has to be paid
 

Fearandloathing

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:lol:come on, who would do THAT...

I am cheap....a penny in my pocket is better than a penny in the banks...if you work out a mortgage...it is paid much, quicker and really is cheaper and it's the same money, it still has to be paid


whoa....


I said NOT MUCH of a difference. FFS do that math. Most loans are interest bearing. $1,000 over 12 months at 10% = 100. Pay 110 a month you pay $100 dollars in interest. You pay $55 twice a month what do you get?

Per thousand you're looking at maybe "4 in this era.

As to who? Me. Sometimes, especially with low interest rates, it's better to take a larger hit on interest and delay payments, if that money can work for you, as in your own business or some other investment. If my bank loan charges me 4% and I can make 20% buying and selling something you make money taking the longer term to pay
 
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Cephus

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whoa....


I said NOT MUCH of a difference. FFS do that math. Most loans are interest bearing. $1,000 over 12 months at 10% = 100. Pay 110 a month you pay $100 dollars in interest. You pay $55 twice a month what do you get?

Per thousand you're looking at maybe "4 in this era.

As to who? Me. Sometimes, especially with low interest rates, it's better to take a larger hit on interest and delay payments, if that money can work for you, as in your own business or some other investment. If my bank loan charges me 4% and I can make 20% buying and selling something you make money taking the longer term to pay

That's one reason why paying everything in cash instead of credit isn't necessarily a good idea, because you can often make more money having it work for you than you could save on interest. You actually potentially lose money that way.
 

radcen

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That's one reason why paying everything in cash instead of credit isn't necessarily a good idea, because you can often make more money having it work for you than you could save on interest. You actually potentially lose money that way.
The money you gain in interest while you are saving for the big purchase should factor in somewhere, as well.
 
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