Mother says my loans interest will just eat up any extra money i put on my payment…?
It depends on the type of loan. If it a credit card you can pay it monthly,but interst will apply unless you pay the total balance. I f as I suspect you have a bank loan for say a year then the interst is calculated up front. That means even if you pay the principal back the very next day, it is first applied to the entire years interest and then any fees, and only at last to the principal. So depending what you paid,it may be best to invest your 1300 dollars in a daily interest savings account to recoup some of the interest, (though investment interest is not as much as the loan interest), And pay the loan in total when the term is about to end, rather than make your partial payment.
