6 years ago I was in a bad place. Financially strapped and the primary support for the family. I began having problems with my car - decided I should try to get a new one as we really could not afford car repairs.
Entered into a loan for for a $460 a month for 6 years. I had no idea was simple interest meant and no one, from the loan guy at the dealership, to the loan company itself - ever bothered to explain it fully. They did not bother to warn me about the true context of this agreement. I am going to post here it will help others.
If you enter into a simple interest loan and you are ever late on your payments, you will owe more principal balance at the end of your loan term. A lot of money. I have struggled this entire loan to make those payments. I have asked repeatedly to get a refinance to lower the payments, but they repeatedly denied me. Now I know why. They make more money off of you if you are struggling than if you are able to manage the debt more successfully.
I was never a full 30 days late, but always late by a week or so due to how my income falls. Now, at the end of the loan I owe nearly 2K additional in principal to them. It was recently explained to me that when you make your agreed contractual payment and you have paid it late, they apply the payment to the interest first and then to your principal So, if you have paid late, you owe additional interest and now the principal is paid less. So, at the end of the loan you are now at risk and actually owe them principal - not late fees, not interest. WTF?
I actually look at that car and feel disgust. Like a wh*re. I sold myself to the devil so that I could make sure my kids would be in a safe car and I could get to and from my job. I am ashamed of myself - ashamed that I have given this disreputable company $22,000 of hard earned money. Never again. I will walk first. I will take a bus or I will spend a car payment's equivalent on cab rides to get to and from my job. But I will never again give this company a dime of my income.
Please be aware and do not borrow money from Wells Fargo. Ever.
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