Lessons from my 2017 auto loan:
Lenders don't publish payment schedules anymore. Why?
ALL loans are front loaded. They don't call them that because "those loans" are illegal. But "normal" now is interest accruing DAILY so the % interest you pay early in a six year (!!) loan is crazy high compared to the end.
Warning: You may think you're paying monthly on time. But if the bank thinks you're paying 30 days late every month your "final payment" can be $12,000.
potty mouth Show more
@jannamark I have no problem with people lending money at a stated rate of interest. But it's shocking to me how predatory "normal" auto loans have become. They're aggressively exploiting every possible angle to screw the debtor in every possible way.
And the poorer you are, the worse the system is. It is unbelievably expensive to live with bad credit.
@deafferret Disturbing, and a calculated, vicious blow to everyone who needs to have their own reliable transportation to secure employment. We've lost a lot of consumer protections, and we're about to lose more.
potty mouth Show more
@jannamark I was *shocked* by that $12,000 final payment story -- but it came from THE LENDER so I believe them. Their system doesn't warn about late payments until 45 days late -- so he NEVER KNEW until the end. ... Just ... un-f'n-believable.
I'm so old I remember non predatory loans where the amount of interest paid was flat across the duration of the loan. And 15-30 day grace periods (ZERO INTEREST) were normal on multi-year loans.
Payment schedules were honest, transparent.