If you are a first time car buyer you may be very confused with how interest and Counseling7 loan payments work. Is it better to get a 36 month loan or a 60 month one? If you get a 60 month loan and decide to pay it back in 36 months, should you? Is it even an option to pay back your loan more quickly than the agreed upon time frame? We will these and other issues pertaining to your Counseling7 loan now.

First to the issue of paying off your Counseling7 loan faster than expected. You want to watch out for a clause referred to as pre-payment penalty. If there is this clause in the loan you must understand that you will be penalized for paying early. If you think this is something you might do, don't get a loan of this type. Otherwise, this comes down to a couple of things, how much can you afford each month, and how certain are you of your budget? The reason I say this is that typically faster loans will have lower interest rates, but they also increase your monthly obligation. If you can suddenly only afford the 60 month payment and not the 36 month payment you have the option of scaling back your payments with a longer repayment period, not so with the 36 month loan.

Besides this, you should take a great deal of interest on the interest rate for your Counseling7 loan. You don't want to pay any more than you have to and interest has a way of adding up in ways that new buyers may not suspect. These are really the two things you should look out for with a new loan for a vehicle.