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why does my car loan interest go up despite making payments on-time?
user
interest is calculated daily. doing the math: between 6-17 and 7-25 are 38 days, 200.29 / 38 = 5.27 interest per day. between 7-25 and 8-17 are 23 days. 120.02 / 23 = 5.22 interest per day. the minimal difference is because the principal has already gone down a little bit. so you should expect ~5.20 x number of days for the next interest number coming up; slowly decreasing as the remaining principal debt decreases. note that this is equivalent of an annual interest rate of over 20 %, which is beyond acceptable. in the current economy, this is ridiculously high. i recommend trying to get a refinancing with another provider; you should be able to get it for a third of that.
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