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Saving Advice
Saving Advice
Lifestyle
Teri Monroe

Are You Paying “Phantom Interest” Because You Chose the Wrong Payoff Strategy?

senior accruing phantom interest on new car
Image Source: 123rf.com

Many borrowers don’t realize they may be paying what’s called “phantom interest.” This hidden cost appears when balances don’t shrink as quickly as they should, even with regular payments. The culprit is often the wrong payoff strategy. Retirees and families alike lose money without understanding why. Here’s how phantom interest drains wallets—and how to fix it.

How Phantom Interest Works

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