It simply cannot be stressed enough when considering the capital costs of paying off or refinancing a basic instalment loan. The cost would appear to be high, but remember, it is a balance between your annual fee and the payments that will need to be deducted. When we look at average loan charges, we can meaningfully compare the amount of money you will pay when the loan is walking, versus when it is late or defaulting. Your monthly payment on these kinds of loans – have a good look at the interest payment. Remember this time is called the interest period and when you determine the point method is used, you will most likely be paying this in the middle or end of the term, usually based on the original extension term. This basically means that you are paying for months away from the loan date, even when the interest is paid if no modification are requested, and the monthly payment during the period of the loan is less than 7 years. Have a good look at the high interest rate payment structure of the loan, plan a better payment structure and have a look at financial horizon analysis. Don’t just look at all the parameters – the structure may not be adjustable for your specific needs of different people, therefore, plan ahead how you will pay it, and count on that, there may not be another option.Even though the interest rate is a factor, there are arguments that the balance being paid by you is not an accurate comparison either.