Amortization

Amounts paid each month for principal and interest are known as amortization.

When a borrower pays a finance charge on an overdue balance on a car loan, the simple interest format is commonly employed. The monthly finance fee decreases in direct proportion to the decrease in the outstanding debt. As the loan’s interest rate declines, more of each month’s payment can be applied to the debt.

DOWNLOAD THE APP

Start rounding up and saving to pay down your car loan faster