New Final Loan Payment

Late payments can lead to a larger final payment.

Your monthly payments are based on your original payment schedule in your financing agreement. If you make your payment after the due date, your account will accrue more interest than planned and we may also add late fees. So, if you don’t pay extra to offset any additional interest or fees before your final payment is due, it is possible that your final payment will be more than your regular scheduled monthly payment.

How interest and fees accrue.

• Interest accrues daily based on simple interest method
• Simple interest method calculates interest by multiplying the outstanding principal balance by the daily interest rate
• We apply your payments towards outstanding interest due before the principal
• If you pay late, more money goes to interest and less to principal
• If you don’t pay extra to cover any unpaid principal, you will have unpaid principal remaining at the end
• Late payments can also result in assessed late fees
• If your late fees remain unpaid, you will also have to pay those at the end

Tips for avoiding a larger final payment.

• Pay your full scheduled monthly payment amount on time.
• If you’ve made late payments, consider paying extra to cover the additional interest.
• Pay late fees promptly.

Here's an example:

If your daily interest amount is $2.00 and you pay 11 days late, you accrue approximately $22 in extra interest. If your next payment is made for just the scheduled monthly payment amount, about $22 less will go to the principal than scheduled, leaving this portion outstanding and potentially increasing your final payment.