Auto payments

[Jpmack29]

on my monthly bill for my auto loan- it has an option to pay the principal only option. What is this and what does it mean? Thanks 

[Anonymous]

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@Jpmack29 wrote:

on my monthly bill for my auto loan- it has an option to pay the principal only option. What is this and what does it mean? Thanks 

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It's an option to make extra payments on your loan and have the amount applied directly to the principal part of your loan.  It's a way to pay off your loan earlier but keep in mind that this does not take the place of your regularly scheduled monthly payment.  I have the same option on my USAA auto loan and have used it to accelerate the pay down of the loan

[Jpmack29]

I see, I'm aware that it doesn't replace my monthly payment. Just wasn't sure what it was for. Thanks