Got a couple of coworkers that are hellbent on not lining someone else's pockets and take it to the extreme. One is super frugal and completely against paying "convenience fees" like service charges or interest, seeing it as giving someone your money for free. If he needed to take out money from an ATM, he'd rather spend 3x the money in gas driving to the bank than paying the $1.50 fee to withdraw it there.

 

If it's a simple interest loan (and unless someone named "Johnny Roastbeef" loaned you the money- IT IS a simple interest loan)

It should state such in the loan paperwork, truth in lending disclosures, and all the paper you signed and possibly didn't read has these details. I'd be very suprised if HD financial is making loans that were not simple interest.

Each and every day interest on the unpaid balance is calculated and added to your account balance. When a payment is applied, the payment is subtracted from the current balance- which includes the unpaid principal, and any accrued interest since the last payment. ALL PAYMENTS ARE APPLIED TO THE UNPAID LOAN BALANCE. There is no Principal vs Interest balance, just one balance that goes up every day by that day's interest charge (and any late fees, etc._
and goes down by the amount of any payments applied. The loan is structured such that making the required payment on or about the due date will retire the loan on or about the loan term date. Most loans accrue interest daily.

There is no allocation of part of the payment to the principal, part to the interest, etc..... It is all one bucket.

Why this is such a difficult concept for some to grasp is beyond me.............

 

LMAO! Those folks are always funny. I know one guy that refuses to do all of his grocery shopping at one store, because "Nobody needs to get that much of my money". LMFAO!

 

 

I setup my March 10th payment via my banks online checking payment processing on February 25th which cleared 2/28/2018. My March 10 billing invoice was received by me on March 6, 2018 just 4 days before the payment is due and is consistent each month. This is why I pay using my online banking to setup payment 15 days prior to the due date so I am not late. The March 10th statement billing finally had the correct interest due calculated. It took from July of 2017 to February of 2018 of monthly calls for them to get to this point. My hope is this issue is behind me now and in 6 months I'll be paid in full and done with Eagle Mark.

 

Tell him to get a bank card that pays ATM fees?

With USAA, I never have to pay an ATM fee.

 

I do this as well,never had an issue in the 6 plus years since I bought my bike.

 

it does work that way. they just give you the option of not making a payment that month. but the extra is applied to principal, and the resulting interest paid will be less. either way, you are only paying interest on the outstanding balance of your loan, if you continue to make payments, then your balance will drop, your interest will drop, and you'll pay off your loan much earlier and save money on interest.

just disregard what they say is due and when and make your normal (or bigger) payment.

 

I set mine up on autopay with them right away and it's worked perfectly every time.

 

I don't understand how such a simple process becomes so hard for some folks.....