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clotheshorse222

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Why isn't the balance on my loan decreasing?
I borrowed $1000 at an annual interest rate of 285.0114% in February 2016, and began biweekly payments of $117.48 from 2/19 through 4/15 (5 payments). I resumed paying biweekly (after emergency surgery) on 5/27, increasing to $176.22. After six such payments, I was told my balance owed was $570. Now after another payment of $176.22, the loan company showed a balance of $564.74. I admit to little understanding of inteest rates and I realize my rate is exorbitant, but there is no penalty for early payoff, so even with such a high interest rate, shouldn't I have had more than $6 of the last payment credited to the principal for the recent payment? Can anyone advise me as to what my pay off should be? I am dealing with a small local outfit and I no longer trust them. Thank you!

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Top Contributor
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Surely, your interest rate is not 285.01114%.  I think your small local outfit is of questionalble intrigity and may date back to the Capone days in Chicago.   What happened between 4/15 and 5/27, were there no payments?   You do not include any penalty amounts during the non payment period.    During your initial 5 payments, you probably didn't pay any much more than about $3 to the principle itself.   It also depends on how the interest is accrued in your agreement.   You need to get out from under that loan as quickly as possible.  Without further details, its difficult to ascertain what your principle amount should be, however 

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