As the others who have posted, paying on time reduces your interest rate you are told.in fact, your bills say 4 more payments or 5 more payments on time qualifies you for the reduced interest rate.
So, I fell for it and agreed to the pile of papers when I was in a bind back in 2005 for a 32,000 loan. Four years gone by and I still owe 29,000 dollars and I've never been late paying 530/month about 50 dollars above the agreed payments.
What they do not tell you, or is hard to find, is that to get the new lower rate you have to refinance the entire thing. They do tell you that interest is a daily calculation which now I know how bullshit that is. I think my last payment applied less than 50 dollars towards the principle.
DO NOT DO IT! I did this as a second mortgage on a 100 k main loan and I am pretty sure I will have the 100k paid off before I even get one-third the principle paid on an HFC 32k loan.
As soon as I can, I am dumping the loan by refinancing my autos, a personal loan whatever. I have to get rid of the blood-sucking loan.
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