The laws were changed effective January 2009 so that all payments on past due child support are applied first to principal, not interest. In the past, payments were applied first to interest, similar to car or house payments. This has changed!
Every payment on past due support lowers the balance on which your interest is accruing. So, if in the past you owed $3000 and paid $50 per month, the past due support would be paid off in 84 months. Now, if you pay $60 per month, the $3000 will be paid off in 76 months. If you pay $75 per month, the $3000 will be paid off in 47 months!
Do you want to calculate how long it will take to pay off your past due support? Check out our Arrears Payoff Calculator. It only takes a minute! You will need your Principal Arrears and Interest Arrears Balances to update the calculator.
The Arrears Payoff Calculator is a valuable tool that will allow you to compare how the length of time and total interest paid are affected by differing monthly payment amounts. Just watch how adding an extra $25 to $50 to your usual monthly payment can significantly decrease the total amount you pay in interest, as well as decreasing the amount of time you are making payments on the past due child support owed.
Use the calculator to estimate how much your payments could change
Call us at (866) 901-3212 or visit www.casdu.com