OpinionJanuary 3, 2003
Paying car loan early not always a good decision
To the editor: On Monday, I noticed that for the second time recently your syndicated financial columnist, Bruce Williams, advised a writer to pay off his car loan early. As I am sure you know, car-loan interest is generally figured using the rule of 78. Under this method of computation, the bulk of the interest is paid early in the life of the loan. This will typically make it unwise to pay off a car loan early...
To the editor:
On Monday, I noticed that for the second time recently your syndicated financial columnist, Bruce Williams, advised a writer to pay off his car loan early. As I am sure you know, car-loan interest is generally figured using the rule of 78. Under this method of computation, the bulk of the interest is paid early in the life of the loan. This will typically make it unwise to pay off a car loan early.
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BRAD WITTENBORN
Cape Girardeau
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