Issues with HD Financing.
#41
It’s hard because people chose it to be so.......
Never heard of anyone having an issue with autopay. Instead people want to continue to write checks or money orders or make payments sporadically. These are when the issues seem to happen. So instead of ice skating uphill why not chose the path of least resistance???
Last edited by MatteGlide15; 03-15-2018 at 07:25 AM.
#42
It’s hard because people chose it to be so.......
Never heard of anyone having an issue with autopay. Instead people want to continue to write checks or money orders or make payments sporadically. These are when the issues seem to happen. So instead of ice skating uphill why not chose the path of least resistance???
#43
....It's 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.............
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.............
Let's say I have two loans, one from Eagle Mark, and one from my bank. I owe both $400 a month. I send them both a payment on autopay from my checking account every month, so I am never late. I never owe late fees. Not an issue. My issue is with how each reports my payments back to me. For example;
My home loan is also a simple interest loan. My payment is $400 a month. I send in $800 for my March payment. My payments go to any unpaid amounts, late fees, then to interest, and the balance goes to my principle. The next month, I get a bill that says my last payment received was $800, they show how much was applied to interest and how much went to the principle. They also show that my next payment is due on the 4th of April, and the amount due is $400.
My HD loan is with Eagle Bank. My payment is also $400 a month. I send in $800 a month. My payments go to any unpaid amounts, late fees, then to interest, and the balance goes to my principle. The next month, however, I get a statement, not a bill, that says my last payment received was $800. I can see my principle went down, but there is no payment due in April. I owe nothing for April. This is my issue, don't read anything more into my issue. I signed a loan document that says I owe $400 a month, they changed my terms when they say I don't owe an April payment. Period. nothing more, nothing less than that. That's my issue. I understand simple interest loans. I don't care whether my loan would be the same as the bank loan, doesn't matter to me. ALL THAT MATTERS TO ME IS HOW EAGLE BANK SAYS I OWE NOTHING FOR APRIL.
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.
just disregard what they say is due and when and make your normal (or bigger) payment.
They sign it, you sign it, and then when you start to double up, they "change" the contract by telling you that you don't owe anything "this month". I am not trying to get technical, I know they didn't change the contract literally, but for Eagle Bank to say my next payment is Zero, that's my issue, my only issue. I don't give a rat's pitute about simple interest or any of that stuff, my issue is they tell me not to make a payment, and by my doing that, I end up paying more than I would have (but not more than my loan document says) but defeats the purpose of trying to make additional payments to the principle.
If you took the time to read my replies, then I do understand everything you are saying, I do understand that my loan principle is reducing, but for the poor schmuck who doesn't make that next payment, his interest just keeps being added to his daily loan balance, and his good intentions go down the tube. I am just making a point, Eagle Bank should not change the terms of the loan agreement (NO Payment due next month) just because you pay more than the minimum amount.
For your reading pleasure, I am attaching a link that shows what happens when you take Eagle bank's statement and don't send a payment or two because you are ahead. https://www.onemainfinancial.com/pdf...e-interest.pdf
Go to page 3.
#44
Just because they send you a statement that says you don't owe a payment that month doesn't mean you can't pay. If you have a loan balance but you've paid double the month before, you technically may not owe a payment that month but you still have a balance. It's very simple to just keep paying and pay the loan off early even though your statement shows a $0 payment that month.
#45
Just because they send you a statement that says you don't owe a payment that month doesn't mean you can't pay. If you have a loan balance but you've paid double the month before, you technically may not owe a payment that month but you still have a balance. It's very simple to just keep paying and pay the loan off early even though your statement shows a $0 payment that month.
I've also had a couple of Eaglemark loans over the years. I got ahead and eventually paid them off early. But I did just as I mention above. Just kept paying the payment no matter that the statement said I didn't have to pay anything that month.
It's beyond me why someone wants to pitch a bitch about getting the zero owed statement. Especially when they've made lengthy posts saying that they understand how it works. Pay the normal amount no matter what the statement says, or don't. Those are the options, you choose which one suits you. If you're not fooled by it, why complain in such detail on these pages?
Sometimes I think people are posting a solution in search of a problem.
Last edited by 2goldens; 03-15-2018 at 10:20 AM.
#46
Just because they send you a statement that says you don't owe a payment that month doesn't mean you can't pay. If you have a loan balance but you've paid double the month before, you technically may not owe a payment that month but you still have a balance. It's very simple to just keep paying and pay the loan off early even though your statement shows a $0 payment that month.
#47
I pitch a bitch because it is wrong.
#48
I'm not taking any more time out of my day to reread the whole thread, but have you addressed this with the financial institution in question?
#49
I have two vehicle loan payments. One for my truck and one for my bike. The truck is paid out of the household budget on an automatic payment program. I rounded up the payment to the nearest hundred $. Which means I pay about an extra $50 a month, not a lot but I will be paying the truck off early, more than the $50 a month would add up to. The interest will be reduced as a result. For my bike, I work a part-time job. I am retired and the money from this job goes into a "Fun & Games" account. I pay for my boat racing out of this account and everything left goes into my bike. I am always several months ahead of what I need to pay and intend to pay it off way early.
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