I have an auto loan and every month I pay way more than what is do. It all started out w/ my first payment. The payment due was $300 and I paid $400. The next month I got the bill and it said that only $200 was due? So I sent them $600. The next month the bill came and it said that -0- was due? I still paid $600. Does this mean that they are not applying my extra money to the principal of the loan? Is this how they discourage people from paying extra by stating on the next bill that they don't owe anything (if you doubled your payment the previous month) so that people won't send anyting until the following month, hence, falling back to their original payment schedule? I'm confused...I'm just trying to hurry up and pay this car off and avoid some of that 19.81% interest rate!