<prompt> Human: I bought a new bike back in April. I put down a big deposit and financed 2,990.00. My bill each month is 50, I over pay each month by 50 making my payment 100 each month. I just checked my remaining balance after several months and I expected to have paid off 700 on what owe. Instead I was confronted with numbers that were less than half. They say Ive only paid 300 of what I owe but the payment history shows 700. I contacted them and they sent an email stating that I accrue interest every day and that Ive paid 400 towards interest while Ive only paid 300 towards my balance! This has me seething with anger. I dont get it. How can you over pay each month and still not out pay the interest? At this rate, if I continue paying 50 more each month then by the end Ill have paid double the amount I financed. This wasnt some mom and pop dealership either. This was the Harley Davidson dealership in Fort Smith. And I do not have bad credit, in case that could be a cause of this. Could someone explain why this is this way and if theres anything I can do to fix it? Please. Edit: oh and the numbers are not exact, it was easier to explain with even numbers than throw out a bunch of mixed numbers. Edit: Ok so I didnt understand compound interest and that my 18 on my loan was being charged interest every single day. After learning more today and getting educated on refinancing. It seems thats what I should have done to begin with. Thanks for any that provided helpful responses.  <response>: Whats your interest rate? Are the payments going towards the principle of future payments?Why do people sign contracts without understanding what theyre agreeing to? 