How much extra should I put toward my car loan each month?

I want to pay my car loan off early, but I'm not sure how much I should put toward the principal. What's a good amount?

Answer
The amount of extra money you put toward a car loan is entirely based on your financial situation. If you have some extra cash to throw at the principal, go for it. If you don’t, save the money for other bills or expenses.
There is no ideal percentage or dollar amount as it’s mainly about what you can afford. Don’t overextend yourself or carry other debt just so you can pay off your car loan faster—but don’t spend frivolously, either.
One way to cut down on your expenses is to find savings on your car insurance. The Jerry app will find you the best rates from up to 50 providers and help you switch—so you can use the money you’ve saved towards your car loan.
Eric Schad
Answered on Oct 26, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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