Is there a benefit to making a principle only payment on a simple interest loan?
If you’ve got a loan charging simple interest, is there a difference in making a payment larger than your amount due vs. making a second, ‘principle only’ payment? Isn’t the extra you’re paying on the larger payment going to the principle anyway? So, isn’t that the same end as making an additional payment?
If there IS a difference, what am I missing?
This question is in the General Section. Responses must be helpful and on-topic.