Do I pay more interest if I delay my repayment date? Reply: yes
Sadly, once you delay a repayment date on any type of loan, the interest continues to accumulate. Interest rates are calculated using the full borrowed total that is left, not the repayment amount each month.
It is best instead to find different ways to repay your loan other than delaying the payment. If you have suddenly noticed a sharp increase in loan interest because of a missed payment or delayed payment, it is likely because interest also accrues with each day.
One tip to combat delaying loan repayment dates is to pay a partial amount at a time. For instance, if you are paid two times a month, then one check can pay a portion of the loan repayment, while the other pays the remaining balance after the first portion is paid. Although this does not decrease the interest rate for each month, it can aid in money management.
Paying more than the set repayment amount can also decrease the interest over time. However, borrowers should read their contracts to see if there is a rule against paying a loan quicker than the estimated date.
Interest and Delay Repayment Conclusion
Our Mortgage House experts know that paying the repayment each month can be hard. When problems arise, though, and borrowers change their repayment date, they should expect a larger monthly amount since interest increases each day. Interest does not stop just because the date has changed.