Does this statement mean that I'm not knocking down any interest by paying off sooner?

"Any additional payment amount will be applied to the next monthly payment. If the account is paid ahead 3 payments, any additional funds will be applied to the principal balance."

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tallpowerhouseblonde · 31-35, F Best Comment

No.It means debt is paid down.You will pay less interest because you have less debt.

iamnikki · 31-35, F

@tallpowerhouseblonde thank you

tallpowerhouseblonde · 31-35, F

@iamnikki YW and thank you for best answer.

HannahSky · F

You're essentially paying off the balance sooner, which is good and ultimately less interest paid.

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HannahSky · F

@iamnikki you should have a payoff balance. If you want to pay it off today, there should be a payoff balance showing somewhere.

iamnikki · 31-35, F

@HannahSky Right, I was asking about avoiding interest...is paying off in full the only way? I think it is.

HannahSky · F

@iamnikki sooner you pay, sooner you'll stop interest accruing.

Keepitsimple · 51-55, F

You need to call and ask that it be applied to the principal when making the payment. Do it by phone.

iamnikki · 31-35, F

@Keepitsimple that's what it says above.

Keepitsimple · 51-55, F

I would call.@iamnikki

curiosi · 61-69, F

Yeah, in a roundabout way. If you knock down the principal however there is less interest charged because the balance is lower.

MrBrownstone · 46-50, M

After 3 months ahead you will be knocking out principal. When you get rid of that,interest goes away.

4meAndyou · F

No, it just means you have to pay the equivalent dollar amount of three payments (or more) in order for it to go toward your principal. Then, as you know, you are paying interest on the REDUCED principal, which means your interest will be lower.

SW-User

After being ahead 3 months ...

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