Please rest assured that this is completely normal and expected behavior. We are happy to break down how your payments are applied, why the progress bar initially stays stationary, and when you can expect to see that balance drop.
Payments Will Initially Be Applied to the Accrued Interest
Because interest continuously accrues on your principal balance, your monthly payment must first cover all the interest that has accrued over time. Only after the accrued interest is paid off will the remaining portion of your payment start reducing the principal balance.
The progress bar on your home dashboard tracks only the reduction in your principal balance.
Because your initial payments after your residency and grace period will be applied to the interest accrued during that time first, your payments will likely not be going toward reducing the principal balance yet. As a result, the progress bar on your dashboard may not move for a period of time.
Once the accrued interest balance is paid down, your monthly payments will be applied to both the accrued interest and your principal balance. You will then see the dashboard progress bar start advancing with each payment you make.
How to Pay Down Interest Faster
If you want to pay down the accrued interest sooner and start seeing your principal balance drop faster, consider these strategies:
- Make Extra or Larger Payments: Adding extra funds to your regular monthly payment or making extra payments will directly accelerate how quickly you clear through accrued interest.
- Pay More Frequently: Making biweekly payments or small mid-month micro-payments can reduce the total amount of daily interest that accrues between cycles.