Why isn't the balance on my personal loan decreasing?

If you have a temporary payment arrangement, the agreed amount may be so low that it only covers interest and any fees.

Therefore, your debt will not decrease while the arrangement is in effect, because none or only a small portion of the payment is used to repay the loan principal.

Personal loans are normally structured as amortizing loans. This means that you pay the same amount every month throughout the loan term. At the beginning of the loan period, a larger portion of the monthly payment consists of interest and a smaller portion of principal repayment. As the balance decreases, the interest cost becomes lower, which means that a larger portion of the payment goes toward repaying the loan.

If you would like to know how your payment affects your loan or have questions about your repayment plan, please contact customer service via secure message.