Originally Posted by ntr91

You also have to keep in mind the fact that interest compounds on a declining balance. For example, if you were to pay off the whole balance in a year rather than the 24 months, you wouldn't be paying 4% of the initial BT, but rather 4% of a steadily decreasing balance. Depending on your payoff schedule, it may make more sense to pay the interest than the fee on the whole balance.