| So how do you lower the balance on the interest only line of credit |
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| Written by
yangying |
| April 15, 2008 12:43 |
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Your minimum payment is only simple interest, but like most loans you can pay additional towards the principal balance with your monthly statement. As a side note, in doing this the advantage of an interest only line of credit is that your next months minimum payment will go down. For example, if you have a $25,000 line of credit at Prime -1 (currently would be 6.5%) and your minimum payment is $135.42, if you make a payment of $500 this month $364.58 would be applied towards your principal balance. Next month if you made the same payment of $500 your balance would go down to $24,635.42 and your minimum payment would go down to $133.44, so $366.56 would be applied towards your principal balance. This is the power of simple interest vs an amortization schedule.
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| German : So, wie Sie niedriger das Gleichgewicht auf dem Interesse nur Kreditlinie |
| Spanish : Por lo tanto, ¿Cómo se reduce el saldo de los intereses sólo línea de crédito |
| French : Donc, comment faire pour réduire le solde sur l'intérêt que la ligne de crédit |
| Japanese : そこでどのように関心を信用のみ行は、バランスを低くする |
| Russian : Так как вы меньше остатка по интересам лишь кредитной линии |
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