Because it's different than the way they've been doing it for the past 30 years. I work IT, I know how resistant people are to change, especially the older crowd.

 

The concept is not difficult to understand. My payment goes first to any unpaid amounts like late fees, then to interest, and any left over goes to my principle. Not a problem. I understand this order of payments.

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.

Thanks, but my point is, when you sign the loan agreement, you agree to pay your obligation each month on a certain day.

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.

 

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.

 

It really is that simple. My truck loan is this way every month. Since the beginning when I got ahead I keep getting the Current Payment Due - $0.00 statement every month. I pay it no mind and send in the normal amount anyway.
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.

 

I know.

 

I guess I have not made myself clear. Why oh why do I bother to explain my position?

I pitch a bitch because it is wrong.

 

It appears to be wrong for you. And I guess that's what matters. As we've seen here, many of us didn't really have a problem with it when we were in the same situation. We paid whether we were expected to or not and moved on with the business of life.
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?

 

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.
kk

 

I went with the "100% down, no pesky monthly payments" financing for my '17 Ultra Ltd. I hate
vehicle payments. Sometimes they are necessary but it's nice if you can avoid them.