diff --git a/htlcswitch/failure.go b/htlcswitch/failure.go
index 0d817a07..35d78590 100644
--- a/htlcswitch/failure.go
+++ b/htlcswitch/failure.go
@@ -9,6 +9,76 @@ import (
 	"github.com/lightningnetwork/lnd/lnwire"
 )
 
+// ClearTextError is an interface which is implemented by errors that occur
+// when we know the underlying wire failure message. These errors are the
+// opposite to opaque errors which are onion-encrypted blobs only understandable
+// to the initiating node. ClearTextErrors are used when we fail a htlc at our
+// node, or one of our initiated payments failed and we can decrypt the onion
+// encrypted error fully.
+type ClearTextError interface {
+	error
+
+	// WireMessage extracts a valid wire failure message from an internal
+	// error which may contain additional metadata (which should not be
+	// exposed to the network). This value may be nil in the case where
+	// an unknown wire error is returned by one of our peers.
+	WireMessage() lnwire.FailureMessage
+}
+
+// LinkError is an implementation of the ClearTextError interface which
+// represents failures that occur on our incoming or outgoing link.
+type LinkError struct {
+	// msg returns the wire failure associated with the error.
+	// This value should *not* be nil, because we should always
+	// know the failure type for failures which occur at our own
+	// node.
+	msg lnwire.FailureMessage
+
+	// FailureDetail enriches the wire error with additional information.
+	FailureDetail
+}
+
+// NewLinkError returns a LinkError with the failure message provided.
+// The failure message provided should *not* be nil, because we should
+// always know the failure type for failures which occur at our own node.
+func NewLinkError(msg lnwire.FailureMessage) *LinkError {
+	return &LinkError{msg: msg}
+}
+
+// NewDetailedLinkError returns a link error that enriches a wire message with
+// a failure detail.
+func NewDetailedLinkError(msg lnwire.FailureMessage,
+	detail FailureDetail) *LinkError {
+
+	return &LinkError{
+		msg:           msg,
+		FailureDetail: detail,
+	}
+}
+
+// WireMessage extracts a valid wire failure message from an internal
+// error which may contain additional metadata (which should not be
+// exposed to the network). This value should never be nil for LinkErrors,
+// because we are the ones failing the htlc.
+//
+// Note this is part of the ClearTextError interface.
+func (l *LinkError) WireMessage() lnwire.FailureMessage {
+	return l.msg
+}
+
+// Error returns the string representation of a link error.
+//
+// Note this is part of the ClearTextError interface.
+func (l *LinkError) Error() string {
+	// If the link error has no failure detail, return the wire message's
+	// error.
+	if l.FailureDetail == FailureDetailNone {
+		return l.msg.Error()
+	}
+
+	return fmt.Sprintf("%v: %v", l.msg.Error(), l.FailureDetail)
+}
+
 // ForwardingError wraps an lnwire.FailureMessage in a struct that also
 // includes the source of the error.
 type ForwardingError struct {
@@ -18,28 +88,51 @@ type ForwardingError struct {
 	// zero is the self node.
 	FailureSourceIdx int
 
-	// ExtraMsg is an additional error message that callers can provide in
-	// order to provide context specific error details.
-	ExtraMsg string
+	// msg is the wire message associated with the error. This value may
+	// be nil in the case where we fail to decode failure message sent by
+	// a peer.
+	msg lnwire.FailureMessage
+}
 
-	lnwire.FailureMessage
+// WireMessage extracts a valid wire failure message from an internal
+// error which may contain additional metadata (which should not be
+// exposed to the network). This value may be nil in the case where
+// an unknown wire error is returned by one of our peers.
+//
+// Note this is part of the ClearTextError interface.
+func (f *ForwardingError) WireMessage() lnwire.FailureMessage {
+	return f.msg
 }
 
 // Error implements the built-in error interface. We use this method to allow
 // the switch or any callers to insert additional context to the error message
 // returned.
 func (f *ForwardingError) Error() string {
-	if f.ExtraMsg == "" {
-		return fmt.Sprintf(
-			"%v@%v", f.FailureMessage, f.FailureSourceIdx,
-		)
-	}
-
 	return fmt.Sprintf(
-		"%v@%v: %v", f.FailureMessage, f.FailureSourceIdx, f.ExtraMsg,
+		"%v@%v", f.msg, f.FailureSourceIdx,
 	)
 }
 
+// NewForwardingError creates a new payment error which wraps a wire error
+// with additional metadata.
+func NewForwardingError(failure lnwire.FailureMessage,
+	index int) *ForwardingError {
+
+	return &ForwardingError{
+		FailureSourceIdx: index,
+		msg:              failure,
+	}
+}
+
+// NewUnknownForwardingError returns a forwarding error which has a nil failure
+// message. This constructor should only be used in the case where we cannot
+// decode the failure we have received from a peer.
+func NewUnknownForwardingError(index int) *ForwardingError {
+	return &ForwardingError{
+		FailureSourceIdx: index,
+	}
+}
+
 // ErrorDecrypter is an interface that is used to decrypt the onion encrypted
 // failure reason an extra out a well formed error.
 type ErrorDecrypter interface {
@@ -94,15 +187,10 @@ func (s *SphinxErrorDecrypter) DecryptError(reason lnwire.OpaqueReason) (
 	r := bytes.NewReader(failure.Message)
 	failureMsg, err := lnwire.DecodeFailure(r, 0)
 	if err != nil {
-		return &ForwardingError{
-			FailureSourceIdx: failure.SenderIdx,
-		}, nil
+		return NewUnknownForwardingError(failure.SenderIdx), nil
 	}
 
-	return &ForwardingError{
-		FailureSourceIdx: failure.SenderIdx,
-		FailureMessage:   failureMsg,
-	}, nil
+	return NewForwardingError(failureMsg, failure.SenderIdx), nil
 }
 
 // A compile time check to ensure ErrorDecrypter implements the Deobfuscator
diff --git a/htlcswitch/failure_detail.go b/htlcswitch/failure_detail.go
new file mode 100644
index 00000000..92b25510
--- /dev/null
+++ b/htlcswitch/failure_detail.go
@@ -0,0 +1,58 @@
+package htlcswitch
+
+// FailureDetail is an enum which is used to enrich failures with
+// additional information.
+type FailureDetail int
+
+const (
+	// FailureDetailNone is returned when the wire message contains
+	// sufficient information.
+	FailureDetailNone = iota
+
+	// FailureDetailOnionDecode indicates that we could not decode an
+	// onion error.
+	FailureDetailOnionDecode
+
+	// FailureDetailLinkNotEligible indicates that a routing attempt was
+	// made over a link that is not eligible for routing.
+	FailureDetailLinkNotEligible
+
+	// FailureDetailOnChainTimeout indicates that a payment had to be timed
+	// out on chain before it got past the first hop by us or the remote
+	// party.
+	FailureDetailOnChainTimeout
+
+	// FailureDetailHTLCExceedsMax is returned when a htlc exceeds our
+	// policy's maximum htlc amount.
+	FailureDetailHTLCExceedsMax
+
+	// FailureDetailInsufficientBalance is returned when we cannot route a
+	// htlc due to insufficient outgoing capacity.
+	FailureDetailInsufficientBalance
+)
+
+// String returns the string representation of a failure detail.
+func (fd FailureDetail) String() string {
+	switch fd {
+	case FailureDetailNone:
+		return "no failure detail"
+
+	case FailureDetailOnionDecode:
+		return "could not decode onion"
+
+	case FailureDetailLinkNotEligible:
+		return "link not eligible"
+
+	case FailureDetailOnChainTimeout:
+		return "payment was resolved on-chain, then canceled back"
+
+	case FailureDetailHTLCExceedsMax:
+		return "htlc exceeds maximum policy amount"
+
+	case FailureDetailInsufficientBalance:
+		return "insufficient bandwidth to route htlc"
+
+	default:
+		return "unknown failure detail"
+	}
+}
diff --git a/htlcswitch/interfaces.go b/htlcswitch/interfaces.go
index bb34b283..1281e951 100644
--- a/htlcswitch/interfaces.go
+++ b/htlcswitch/interfaces.go
@@ -102,20 +102,21 @@ type ChannelLink interface {
 
 	// CheckHtlcForward should return a nil error if the passed HTLC details
 	// satisfy the current forwarding policy fo the target link. Otherwise,
-	// a valid protocol failure message should be returned in order to
-	// signal to the source of the HTLC, the policy consistency issue.
+	// a LinkError with a valid protocol failure message should be returned
+	// in order to signal to the source of the HTLC, the policy consistency
+	// issue.
 	CheckHtlcForward(payHash [32]byte, incomingAmt lnwire.MilliSatoshi,
 		amtToForward lnwire.MilliSatoshi,
 		incomingTimeout, outgoingTimeout uint32,
-		heightNow uint32) lnwire.FailureMessage
+		heightNow uint32) *LinkError
 
 	// CheckHtlcTransit should return a nil error if the passed HTLC details
-	// satisfy the current channel policy.  Otherwise, a valid protocol
-	// failure message should be returned in order to signal the violation.
-	// This call is intended to be used for locally initiated payments for
-	// which there is no corresponding incoming htlc.
+	// satisfy the current channel policy.  Otherwise, a LinkError with a
+	// valid protocol failure message should be returned in order to signal
+	// the violation. This call is intended to be used for locally initiated
+	// payments for which there is no corresponding incoming htlc.
 	CheckHtlcTransit(payHash [32]byte, amt lnwire.MilliSatoshi,
-		timeout uint32, heightNow uint32) lnwire.FailureMessage
+		timeout uint32, heightNow uint32) *LinkError
 
 	// Bandwidth returns the amount of milli-satoshis which current link
 	// might pass through channel link. The value returned from this method
diff --git a/htlcswitch/link.go b/htlcswitch/link.go
index 0bba3f65..92ecba65 100644
--- a/htlcswitch/link.go
+++ b/htlcswitch/link.go
@@ -2135,16 +2135,17 @@ func (l *channelLink) UpdateForwardingPolicy(newPolicy ForwardingPolicy) {
 	l.cfg.FwrdingPolicy = newPolicy
 }
 
-// CheckHtlcForward should return a nil error if the passed HTLC details satisfy
-// the current forwarding policy fo the target link.  Otherwise, a valid
-// protocol failure message should be returned in order to signal to the source
-// of the HTLC, the policy consistency issue.
+// CheckHtlcForward should return a nil error if the passed HTLC details
+// satisfy the current forwarding policy fo the target link. Otherwise,
+// a LinkError with a valid protocol failure message should be returned
+// in order to signal to the source of the HTLC, the policy consistency
+// issue.
 //
 // NOTE: Part of the ChannelLink interface.
 func (l *channelLink) CheckHtlcForward(payHash [32]byte,
 	incomingHtlcAmt, amtToForward lnwire.MilliSatoshi,
 	incomingTimeout, outgoingTimeout uint32,
-	heightNow uint32) lnwire.FailureMessage {
+	heightNow uint32) *LinkError {
 
 	l.RLock()
 	policy := l.cfg.FwrdingPolicy
@@ -2176,14 +2177,14 @@ func (l *channelLink) CheckHtlcForward(payHash [32]byte,
 
 		// As part of the returned error, we'll send our latest routing
 		// policy so the sending node obtains the most up to date data.
-
-		return l.createFailureWithUpdate(
+		failure := l.createFailureWithUpdate(
 			func(upd *lnwire.ChannelUpdate) lnwire.FailureMessage {
 				return lnwire.NewFeeInsufficient(
 					amtToForward, *upd,
 				)
 			},
 		)
+		return NewLinkError(failure)
 	}
 
 	// Finally, we'll ensure that the time-lock on the outgoing HTLC meets
@@ -2198,26 +2199,27 @@ func (l *channelLink) CheckHtlcForward(payHash [32]byte,
 
 		// Grab the latest routing policy so the sending node is up to
 		// date with our current policy.
-		return l.createFailureWithUpdate(
+		failure := l.createFailureWithUpdate(
 			func(upd *lnwire.ChannelUpdate) lnwire.FailureMessage {
 				return lnwire.NewIncorrectCltvExpiry(
 					incomingTimeout, *upd,
 				)
 			},
 		)
+		return NewLinkError(failure)
 	}
 
 	return nil
 }
 
-// CheckHtlcTransit should return a nil error if the passed HTLC details satisfy the
-// current channel policy.  Otherwise, a valid protocol failure message should
-// be returned in order to signal the violation. This call is intended to be
-// used for locally initiated payments for which there is no corresponding
-// incoming htlc.
+// CheckHtlcTransit should return a nil error if the passed HTLC details
+// satisfy the current channel policy.  Otherwise, a LinkError with a
+// valid protocol failure message should be returned in order to signal
+// the violation. This call is intended to be used for locally initiated
+// payments for which there is no corresponding incoming htlc.
 func (l *channelLink) CheckHtlcTransit(payHash [32]byte,
 	amt lnwire.MilliSatoshi, timeout uint32,
-	heightNow uint32) lnwire.FailureMessage {
+	heightNow uint32) *LinkError {
 
 	l.RLock()
 	policy := l.cfg.FwrdingPolicy
@@ -2232,7 +2234,7 @@ func (l *channelLink) CheckHtlcTransit(payHash [32]byte,
 // the channel's amount and time lock constraints.
 func (l *channelLink) canSendHtlc(policy ForwardingPolicy,
 	payHash [32]byte, amt lnwire.MilliSatoshi, timeout uint32,
-	heightNow uint32) lnwire.FailureMessage {
+	heightNow uint32) *LinkError {
 
 	// As our first sanity check, we'll ensure that the passed HTLC isn't
 	// too small for the next hop. If so, then we'll cancel the HTLC
@@ -2244,13 +2246,14 @@ func (l *channelLink) canSendHtlc(policy ForwardingPolicy,
 
 		// As part of the returned error, we'll send our latest routing
 		// policy so the sending node obtains the most up to date data.
-		return l.createFailureWithUpdate(
+		failure := l.createFailureWithUpdate(
 			func(upd *lnwire.ChannelUpdate) lnwire.FailureMessage {
 				return lnwire.NewAmountBelowMinimum(
 					amt, *upd,
 				)
 			},
 		)
+		return NewLinkError(failure)
 	}
 
 	// Next, ensure that the passed HTLC isn't too large. If so, we'll
@@ -2261,11 +2264,12 @@ func (l *channelLink) canSendHtlc(policy ForwardingPolicy,
 
 		// As part of the returned error, we'll send our latest routing
 		// policy so the sending node obtains the most up-to-date data.
-		return l.createFailureWithUpdate(
+		failure := l.createFailureWithUpdate(
 			func(upd *lnwire.ChannelUpdate) lnwire.FailureMessage {
 				return lnwire.NewTemporaryChannelFailure(upd)
 			},
 		)
+		return NewDetailedLinkError(failure, FailureDetailHTLCExceedsMax)
 	}
 
 	// We want to avoid offering an HTLC which will expire in the near
@@ -2275,12 +2279,12 @@ func (l *channelLink) canSendHtlc(policy ForwardingPolicy,
 		l.log.Errorf("htlc(%x) has an expiry that's too soon: "+
 			"outgoing_expiry=%v, best_height=%v", payHash[:],
 			timeout, heightNow)
-
-		return l.createFailureWithUpdate(
+		failure := l.createFailureWithUpdate(
 			func(upd *lnwire.ChannelUpdate) lnwire.FailureMessage {
 				return lnwire.NewExpiryTooSoon(*upd)
 			},
 		)
+		return NewLinkError(failure)
 	}
 
 	// Check absolute max delta.
@@ -2289,16 +2293,19 @@ func (l *channelLink) canSendHtlc(policy ForwardingPolicy,
 			"the future: got %v, but maximum is %v", payHash[:],
 			timeout-heightNow, l.cfg.MaxOutgoingCltvExpiry)
 
-		return &lnwire.FailExpiryTooFar{}
+		return NewLinkError(&lnwire.FailExpiryTooFar{})
 	}
 
 	// Check to see if there is enough balance in this channel.
 	if amt > l.Bandwidth() {
-		return l.createFailureWithUpdate(
+		failure := l.createFailureWithUpdate(
 			func(upd *lnwire.ChannelUpdate) lnwire.FailureMessage {
 				return lnwire.NewTemporaryChannelFailure(upd)
 			},
 		)
+		return NewDetailedLinkError(
+			failure, FailureDetailInsufficientBalance,
+		)
 	}
 
 	return nil
diff --git a/htlcswitch/link_test.go b/htlcswitch/link_test.go
index 9efe89dc..16d64d70 100644
--- a/htlcswitch/link_test.go
+++ b/htlcswitch/link_test.go
@@ -574,12 +574,12 @@ func TestExitNodeTimelockPayloadMismatch(t *testing.T) {
 		t.Fatalf("payment should have failed but didn't")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T", err)
+		t.Fatalf("expected a ClearTextError, instead got: %T", err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailFinalIncorrectCltvExpiry:
 	default:
 		t.Fatalf("incorrect error, expected incorrect cltv expiry, "+
@@ -674,12 +674,12 @@ func TestLinkForwardTimelockPolicyMismatch(t *testing.T) {
 		t.Fatalf("payment should have failed but didn't")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T", err)
+		t.Fatalf("expected a ClearTextError, instead got: %T", err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailIncorrectCltvExpiry:
 	default:
 		t.Fatalf("incorrect error, expected incorrect cltv expiry, "+
@@ -732,12 +732,12 @@ func TestLinkForwardFeePolicyMismatch(t *testing.T) {
 		t.Fatalf("payment should have failed but didn't")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T", err)
+		t.Fatalf("expected a ClearTextError, instead got: %T", err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailFeeInsufficient:
 	default:
 		t.Fatalf("incorrect error, expected fee insufficient, "+
@@ -790,12 +790,12 @@ func TestLinkForwardMinHTLCPolicyMismatch(t *testing.T) {
 		t.Fatalf("payment should have failed but didn't")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T", err)
+		t.Fatalf("expected a ClearTextError, instead got: %T", err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailAmountBelowMinimum:
 	default:
 		t.Fatalf("incorrect error, expected amount below minimum, "+
@@ -857,12 +857,12 @@ func TestLinkForwardMaxHTLCPolicyMismatch(t *testing.T) {
 		t.Fatalf("payment should have failed but didn't")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T", err)
+		t.Fatalf("expected a ClearTextError, instead got: %T", err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailTemporaryChannelFailure:
 	default:
 		t.Fatalf("incorrect error, expected temporary channel failure, "+
@@ -964,11 +964,12 @@ func TestUpdateForwardingPolicy(t *testing.T) {
 		t.Fatalf("payment should've been rejected")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got (%T): %v", err, err)
+		t.Fatalf("expected a ClearTextError, instead got (%T): %v", err, err)
 	}
-	switch ferr.FailureMessage.(type) {
+
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailFeeInsufficient:
 	default:
 		t.Fatalf("expected FailFeeInsufficient instead got: %v", err)
@@ -1003,12 +1004,13 @@ func TestUpdateForwardingPolicy(t *testing.T) {
 		t.Fatalf("payment should've been rejected")
 	}
 
-	ferr, ok = err.(*ForwardingError)
+	rtErr, ok = err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got (%T): %v",
+		t.Fatalf("expected a ClearTextError, instead got (%T): %v",
 			err, err)
 	}
-	switch ferr.FailureMessage.(type) {
+
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailTemporaryChannelFailure:
 	default:
 		t.Fatalf("expected TemporaryChannelFailure, instead got: %v",
@@ -1249,13 +1251,14 @@ func TestChannelLinkMultiHopUnknownNextHop(t *testing.T) {
 	if err == nil {
 		t.Fatal("error haven't been received")
 	}
-	fErr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected ForwardingError")
+		t.Fatalf("expected ClearTextError")
 	}
-	if _, ok = fErr.FailureMessage.(*lnwire.FailUnknownNextPeer); !ok {
+
+	if _, ok = rtErr.WireMessage().(*lnwire.FailUnknownNextPeer); !ok {
 		t.Fatalf("wrong error has been received: %T",
-			fErr.FailureMessage)
+			rtErr.WireMessage())
 	}
 
 	// Wait for Alice to receive the revocation.
@@ -1364,12 +1367,12 @@ func TestChannelLinkMultiHopDecodeError(t *testing.T) {
 		t.Fatal("error haven't been received")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T", err)
+		t.Fatalf("expected a ClearTextError, instead got: %T", err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailInvalidOnionVersion:
 	default:
 		t.Fatalf("wrong error have been received: %v", err)
@@ -1456,13 +1459,13 @@ func TestChannelLinkExpiryTooSoonExitNode(t *testing.T) {
 			"time lock value")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T %v",
-			err, err)
+		t.Fatalf("expected a ClearTextError, instead got: %T %v",
+			rtErr, err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailIncorrectDetails:
 	default:
 		t.Fatalf("expected incorrect_or_unknown_payment_details, "+
@@ -1519,12 +1522,13 @@ func TestChannelLinkExpiryTooSoonMidNode(t *testing.T) {
 			"time lock value")
 	}
 
-	ferr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected a ForwardingError, instead got: %T: %v", err, err)
+		t.Fatalf("expected a ClearTextError, instead got: %T: %v",
+			rtErr, err)
 	}
 
-	switch ferr.FailureMessage.(type) {
+	switch rtErr.WireMessage().(type) {
 	case *lnwire.FailExpiryTooSoon:
 	default:
 		t.Fatalf("incorrect error, expected final time lock too "+
@@ -5537,7 +5541,7 @@ func TestCheckHtlcForward(t *testing.T) {
 	t.Run("below minhtlc", func(t *testing.T) {
 		result := link.CheckHtlcForward(hash, 100, 50,
 			200, 150, 0)
-		if _, ok := result.(*lnwire.FailAmountBelowMinimum); !ok {
+		if _, ok := result.WireMessage().(*lnwire.FailAmountBelowMinimum); !ok {
 			t.Fatalf("expected FailAmountBelowMinimum failure code")
 		}
 	})
@@ -5545,7 +5549,7 @@ func TestCheckHtlcForward(t *testing.T) {
 	t.Run("above maxhtlc", func(t *testing.T) {
 		result := link.CheckHtlcForward(hash, 1500, 1200,
 			200, 150, 0)
-		if _, ok := result.(*lnwire.FailTemporaryChannelFailure); !ok {
+		if _, ok := result.WireMessage().(*lnwire.FailTemporaryChannelFailure); !ok {
 			t.Fatalf("expected FailTemporaryChannelFailure failure code")
 		}
 	})
@@ -5553,7 +5557,7 @@ func TestCheckHtlcForward(t *testing.T) {
 	t.Run("insufficient fee", func(t *testing.T) {
 		result := link.CheckHtlcForward(hash, 1005, 1000,
 			200, 150, 0)
-		if _, ok := result.(*lnwire.FailFeeInsufficient); !ok {
+		if _, ok := result.WireMessage().(*lnwire.FailFeeInsufficient); !ok {
 			t.Fatalf("expected FailFeeInsufficient failure code")
 		}
 	})
@@ -5561,7 +5565,7 @@ func TestCheckHtlcForward(t *testing.T) {
 	t.Run("expiry too soon", func(t *testing.T) {
 		result := link.CheckHtlcForward(hash, 1500, 1000,
 			200, 150, 190)
-		if _, ok := result.(*lnwire.FailExpiryTooSoon); !ok {
+		if _, ok := result.WireMessage().(*lnwire.FailExpiryTooSoon); !ok {
 			t.Fatalf("expected FailExpiryTooSoon failure code")
 		}
 	})
@@ -5569,7 +5573,7 @@ func TestCheckHtlcForward(t *testing.T) {
 	t.Run("incorrect cltv expiry", func(t *testing.T) {
 		result := link.CheckHtlcForward(hash, 1500, 1000,
 			200, 190, 0)
-		if _, ok := result.(*lnwire.FailIncorrectCltvExpiry); !ok {
+		if _, ok := result.WireMessage().(*lnwire.FailIncorrectCltvExpiry); !ok {
 			t.Fatalf("expected FailIncorrectCltvExpiry failure code")
 		}
 
@@ -5579,7 +5583,7 @@ func TestCheckHtlcForward(t *testing.T) {
 		// Check that expiry isn't too far in the future.
 		result := link.CheckHtlcForward(hash, 1500, 1000,
 			10200, 10100, 0)
-		if _, ok := result.(*lnwire.FailExpiryTooFar); !ok {
+		if _, ok := result.WireMessage().(*lnwire.FailExpiryTooFar); !ok {
 			t.Fatalf("expected FailExpiryTooFar failure code")
 		}
 	})
@@ -5632,11 +5636,11 @@ func TestChannelLinkCanceledInvoice(t *testing.T) {
 
 	// Because the invoice is canceled, we expect an unknown payment hash
 	// result.
-	fErr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected ForwardingError, but got %v", err)
+		t.Fatalf("expected ClearTextError, but got %v", err)
 	}
-	_, ok = fErr.FailureMessage.(*lnwire.FailIncorrectDetails)
+	_, ok = rtErr.WireMessage().(*lnwire.FailIncorrectDetails)
 	if !ok {
 		t.Fatalf("expected unknown payment hash, but got %v", err)
 	}
@@ -6213,16 +6217,16 @@ func TestChannelLinkReceiveEmptySig(t *testing.T) {
 	aliceLink.Stop()
 }
 
-// assertFailureCode asserts that an error is of type ForwardingError and that
+// assertFailureCode asserts that an error is of type ClearTextError and that
 // the failure code is as expected.
 func assertFailureCode(t *testing.T, err error, code lnwire.FailCode) {
-	fErr, ok := err.(*ForwardingError)
+	rtErr, ok := err.(ClearTextError)
 	if !ok {
-		t.Fatalf("expected ForwardingError but got %T", err)
+		t.Fatalf("expected ClearTextError but got %T", err)
 	}
 
-	if fErr.FailureMessage.Code() != code {
+	if rtErr.WireMessage().Code() != code {
 		t.Fatalf("expected %v but got %v",
-			code, fErr.FailureMessage.Code())
+			code, rtErr.WireMessage().Code())
 	}
 }
diff --git a/htlcswitch/mock.go b/htlcswitch/mock.go
index 5c905822..02737a71 100644
--- a/htlcswitch/mock.go
+++ b/htlcswitch/mock.go
@@ -400,10 +400,7 @@ func (o *mockDeobfuscator) DecryptError(reason lnwire.OpaqueReason) (*Forwarding
 		return nil, err
 	}
 
-	return &ForwardingError{
-		FailureSourceIdx: 1,
-		FailureMessage:   failure,
-	}, nil
+	return NewForwardingError(failure, 1), nil
 }
 
 var _ ErrorDecrypter = (*mockDeobfuscator)(nil)
@@ -648,9 +645,9 @@ type mockChannelLink struct {
 
 	htlcID uint64
 
-	checkHtlcTransitResult lnwire.FailureMessage
+	checkHtlcTransitResult *LinkError
 
-	checkHtlcForwardResult lnwire.FailureMessage
+	checkHtlcForwardResult *LinkError
 }
 
 // completeCircuit is a helper method for adding the finalized payment circuit
@@ -710,14 +707,14 @@ func (f *mockChannelLink) HandleChannelUpdate(lnwire.Message) {
 func (f *mockChannelLink) UpdateForwardingPolicy(_ ForwardingPolicy) {
 }
 func (f *mockChannelLink) CheckHtlcForward([32]byte, lnwire.MilliSatoshi,
-	lnwire.MilliSatoshi, uint32, uint32, uint32) lnwire.FailureMessage {
+	lnwire.MilliSatoshi, uint32, uint32, uint32) *LinkError {
 
 	return f.checkHtlcForwardResult
 }
 
 func (f *mockChannelLink) CheckHtlcTransit(payHash [32]byte,
 	amt lnwire.MilliSatoshi, timeout uint32,
-	heightNow uint32) lnwire.FailureMessage {
+	heightNow uint32) *LinkError {
 
 	return f.checkHtlcTransitResult
 }
diff --git a/htlcswitch/switch.go b/htlcswitch/switch.go
index b78f43b1..c08bdc0c 100644
--- a/htlcswitch/switch.go
+++ b/htlcswitch/switch.go
@@ -756,25 +756,19 @@ func (s *Switch) handleLocalDispatch(pkt *htlcPacket) error {
 		s.indexMtx.RUnlock()
 		if err != nil {
 			log.Errorf("Link %v not found", pkt.outgoingChanID)
-			return &ForwardingError{
-				FailureSourceIdx: 0,
-				FailureMessage:   &lnwire.FailUnknownNextPeer{},
-			}
+			return NewLinkError(&lnwire.FailUnknownNextPeer{})
 		}
 
 		if !link.EligibleToForward() {
-			err := fmt.Errorf("Link %v is not available to forward",
+			log.Errorf("Link %v is not available to forward",
 				pkt.outgoingChanID)
-			log.Error(err)
 
 			// The update does not need to be populated as the error
 			// will be returned back to the router.
-			htlcErr := lnwire.NewTemporaryChannelFailure(nil)
-			return &ForwardingError{
-				FailureSourceIdx: 0,
-				ExtraMsg:         err.Error(),
-				FailureMessage:   htlcErr,
-			}
+			return NewDetailedLinkError(
+				lnwire.NewTemporaryChannelFailure(nil),
+				FailureDetailLinkNotEligible,
+			)
 		}
 
 		// Ensure that the htlc satisfies the outgoing channel policy.
@@ -787,11 +781,7 @@ func (s *Switch) handleLocalDispatch(pkt *htlcPacket) error {
 		if htlcErr != nil {
 			log.Errorf("Link %v policy for local forward not "+
 				"satisfied", pkt.outgoingChanID)
-
-			return &ForwardingError{
-				FailureSourceIdx: 0,
-				FailureMessage:   htlcErr,
-			}
+			return htlcErr
 		}
 
 		return link.HandleSwitchPacket(pkt)
@@ -915,41 +905,43 @@ func (s *Switch) parseFailedPayment(deobfuscator ErrorDecrypter,
 	// decrypt the error, simply decode it them report back to the
 	// user.
 	case unencrypted:
-		var userErr string
 		r := bytes.NewReader(htlc.Reason)
 		failureMsg, err := lnwire.DecodeFailure(r, 0)
 		if err != nil {
-			userErr = fmt.Sprintf("unable to decode onion "+
-				"failure (hash=%v, pid=%d): %v",
-				paymentHash, paymentID, err)
-			log.Error(userErr)
+			// If we could not decode the failure reason, return a link
+			// error indicating that we failed to decode the onion.
+			linkError := NewDetailedLinkError(
+				// As this didn't even clear the link, we don't
+				// need to apply an update here since it goes
+				// directly to the router.
+				lnwire.NewTemporaryChannelFailure(nil),
+				FailureDetailOnionDecode,
+			)
 
-			// As this didn't even clear the link, we don't need to
-			// apply an update here since it goes directly to the
-			// router.
-			failureMsg = lnwire.NewTemporaryChannelFailure(nil)
+			log.Errorf("%v: (hash=%v, pid=%d): %v",
+				linkError.FailureDetail, paymentHash, paymentID,
+				err)
+
+			return linkError
 		}
 
-		return &ForwardingError{
-			FailureSourceIdx: 0,
-			ExtraMsg:         userErr,
-			FailureMessage:   failureMsg,
-		}
+		// If we successfully decoded the failure reason, return it.
+		return NewLinkError(failureMsg)
 
 	// A payment had to be timed out on chain before it got past
 	// the first hop. In this case, we'll report a permanent
 	// channel failure as this means us, or the remote party had to
 	// go on chain.
 	case isResolution && htlc.Reason == nil:
-		userErr := fmt.Sprintf("payment was resolved "+
-			"on-chain, then canceled back (hash=%v, pid=%d)",
+		linkError := NewDetailedLinkError(
+			&lnwire.FailPermanentChannelFailure{},
+			FailureDetailOnChainTimeout,
+		)
+
+		log.Info("%v: hash=%v, pid=%d", linkError.FailureDetail,
 			paymentHash, paymentID)
 
-		return &ForwardingError{
-			FailureSourceIdx: 0,
-			ExtraMsg:         userErr,
-			FailureMessage:   &lnwire.FailPermanentChannelFailure{},
-		}
+		return linkError
 
 	// A regular multi-hop payment error that we'll need to
 	// decrypt.
@@ -1016,18 +1008,21 @@ func (s *Switch) handlePacketForward(packet *htlcPacket) error {
 		// selection process. This way we can return the error for
 		// precise link that the sender selected, while optimistically
 		// trying all links to utilize our available bandwidth.
-		linkErrs := make(map[lnwire.ShortChannelID]lnwire.FailureMessage)
+		linkErrs := make(map[lnwire.ShortChannelID]*LinkError)
 
 		// Try to find destination channel link with appropriate
 		// bandwidth.
 		var destination ChannelLink
 		for _, link := range interfaceLinks {
-			var failure lnwire.FailureMessage
+			var failure *LinkError
 
 			// We'll skip any links that aren't yet eligible for
 			// forwarding.
 			if !link.EligibleToForward() {
-				failure = &lnwire.FailUnknownNextPeer{}
+				failure = NewDetailedLinkError(
+					&lnwire.FailUnknownNextPeer{},
+					FailureDetailLinkNotEligible,
+				)
 			} else {
 				// We'll ensure that the HTLC satisfies the
 				// current forwarding conditions of this target
@@ -1062,7 +1057,9 @@ func (s *Switch) handlePacketForward(packet *htlcPacket) error {
 				// If we can't find the error of the source,
 				// then we'll return an unknown next peer,
 				// though this should never happen.
-				linkErr = &lnwire.FailUnknownNextPeer{}
+				linkErr = NewLinkError(
+					&lnwire.FailUnknownNextPeer{},
+				)
 				log.Warnf("unable to find err source for "+
 					"outgoing_link=%v, errors=%v",
 					packet.outgoingChanID, newLogClosure(func() string {
@@ -1075,7 +1072,7 @@ func (s *Switch) handlePacketForward(packet *htlcPacket) error {
 				htlc.PaymentHash[:], packet.outgoingChanID,
 				linkErr)
 
-			return s.failAddPacket(packet, linkErr, addErr)
+			return s.failAddPacket(packet, linkErr.WireMessage(), addErr)
 		}
 
 		// Send the packet to the destination channel link which
diff --git a/htlcswitch/switch_test.go b/htlcswitch/switch_test.go
index 28493c83..69425dc2 100644
--- a/htlcswitch/switch_test.go
+++ b/htlcswitch/switch_test.go
@@ -1290,7 +1290,7 @@ func TestSwitchForwardCircuitPersistence(t *testing.T) {
 type multiHopFwdTest struct {
 	name                 string
 	eligible1, eligible2 bool
-	failure1, failure2   lnwire.FailureMessage
+	failure1, failure2   *LinkError
 	expectedReply        lnwire.FailCode
 }
 
@@ -1308,9 +1308,11 @@ func TestSkipIneligibleLinksMultiHopForward(t *testing.T) {
 		// Channel one has a policy failure and the other channel isn't
 		// available.
 		{
-			name:          "policy fail",
-			eligible1:     true,
-			failure1:      lnwire.NewFinalIncorrectCltvExpiry(0),
+			name:      "policy fail",
+			eligible1: true,
+			failure1: NewLinkError(
+				lnwire.NewFinalIncorrectCltvExpiry(0),
+			),
 			expectedReply: lnwire.CodeFinalIncorrectCltvExpiry,
 		},
 
@@ -1325,11 +1327,16 @@ func TestSkipIneligibleLinksMultiHopForward(t *testing.T) {
 		// The requested channel has insufficient bandwidth and the
 		// other channel's policy isn't satisfied.
 		{
-			name:          "non-strict policy fail",
-			eligible1:     true,
-			failure1:      lnwire.NewTemporaryChannelFailure(nil),
-			eligible2:     true,
-			failure2:      lnwire.NewFinalIncorrectCltvExpiry(0),
+			name:      "non-strict policy fail",
+			eligible1: true,
+			failure1: NewDetailedLinkError(
+				lnwire.NewTemporaryChannelFailure(nil),
+				FailureDetailInsufficientBalance,
+			),
+			eligible2: true,
+			failure2: NewLinkError(
+				lnwire.NewFinalIncorrectCltvExpiry(0),
+			),
 			expectedReply: lnwire.CodeTemporaryChannelFailure,
 		},
 	}
@@ -1482,7 +1489,9 @@ func testSkipLinkLocalForward(t *testing.T, eligible bool,
 	aliceChannelLink := newMockChannelLink(
 		s, chanID1, aliceChanID, alicePeer, eligible,
 	)
-	aliceChannelLink.checkHtlcTransitResult = policyResult
+	aliceChannelLink.checkHtlcTransitResult = NewLinkError(
+		policyResult,
+	)
 	if err := s.AddLink(aliceChannelLink); err != nil {
 		t.Fatalf("unable to add alice link: %v", err)
 	}
@@ -2178,11 +2187,11 @@ func TestUpdateFailMalformedHTLCErrorConversion(t *testing.T) {
 			t.Fatalf("unable to send payment: %v", err)
 		}
 
-		fwdingErr := err.(*ForwardingError)
-		failureMsg := fwdingErr.FailureMessage
+		routingErr := err.(ClearTextError)
+		failureMsg := routingErr.WireMessage()
 		if _, ok := failureMsg.(*lnwire.FailInvalidOnionKey); !ok {
 			t.Fatalf("expected onion failure instead got: %v",
-				fwdingErr.FailureMessage)
+				routingErr.WireMessage())
 		}
 	}
 
@@ -2441,14 +2450,18 @@ func TestInvalidFailure(t *testing.T) {
 
 	select {
 	case result := <-resultChan:
-		fErr, ok := result.Error.(*ForwardingError)
+		rtErr, ok := result.Error.(ClearTextError)
 		if !ok {
-			t.Fatal("expected ForwardingError")
+			t.Fatal("expected ClearTextError")
 		}
-		if fErr.FailureSourceIdx != 2 {
+		source, ok := rtErr.(*ForwardingError)
+		if !ok {
+			t.Fatalf("expected forwarding error, got: %T", rtErr)
+		}
+		if source.FailureSourceIdx != 2 {
 			t.Fatal("unexpected error source index")
 		}
-		if fErr.FailureMessage != nil {
+		if rtErr.WireMessage() != nil {
 			t.Fatal("expected empty failure message")
 		}
 
diff --git a/lnrpc/routerrpc/router_server.go b/lnrpc/routerrpc/router_server.go
index 0a42e9fc..a1b7948c 100644
--- a/lnrpc/routerrpc/router_server.go
+++ b/lnrpc/routerrpc/router_server.go
@@ -326,12 +326,12 @@ func marshallError(sendError error) (*Failure, error) {
 		return response, nil
 	}
 
-	fErr, ok := sendError.(*htlcswitch.ForwardingError)
+	rtErr, ok := sendError.(htlcswitch.ClearTextError)
 	if !ok {
 		return nil, sendError
 	}
 
-	switch onionErr := fErr.FailureMessage.(type) {
+	switch onionErr := rtErr.WireMessage().(type) {
 
 	case *lnwire.FailIncorrectDetails:
 		response.Code = Failure_INCORRECT_OR_UNKNOWN_PAYMENT_DETAILS
@@ -425,7 +425,16 @@ func marshallError(sendError error) (*Failure, error) {
 		return nil, fmt.Errorf("cannot marshall failure %T", onionErr)
 	}
 
-	response.FailureSourceIndex = uint32(fErr.FailureSourceIdx)
+	// If the ClearTextError received is a ForwardingError, the error
+	// originated from a node along the route, not locally on our outgoing
+	// link. We set failureSourceIdx to the index of the node where the
+	// failure occurred. If the error is not a ForwardingError, the failure
+	// occurred at our node, so we leave the index as 0 to indicate that
+	// we failed locally.
+	fErr, ok := rtErr.(*htlcswitch.ForwardingError)
+	if ok {
+		response.FailureSourceIndex = uint32(fErr.FailureSourceIdx)
+	}
 
 	return response, nil
 }
diff --git a/routing/mock_test.go b/routing/mock_test.go
index d2f7448c..fac67aa9 100644
--- a/routing/mock_test.go
+++ b/routing/mock_test.go
@@ -35,12 +35,12 @@ func (m *mockPaymentAttemptDispatcher) SendHTLC(firstHop lnwire.ShortChannelID,
 	var result *htlcswitch.PaymentResult
 	preimage, err := m.onPayment(firstHop)
 	if err != nil {
-		fwdErr, ok := err.(*htlcswitch.ForwardingError)
+		rtErr, ok := err.(htlcswitch.ClearTextError)
 		if !ok {
 			return err
 		}
 		result = &htlcswitch.PaymentResult{
-			Error: fwdErr,
+			Error: rtErr,
 		}
 	} else {
 		result = &htlcswitch.PaymentResult{Preimage: preimage}
diff --git a/routing/router.go b/routing/router.go
index 463dfaca..8efa63e0 100644
--- a/routing/router.go
+++ b/routing/router.go
@@ -1905,18 +1905,33 @@ func (r *ChannelRouter) processSendError(paymentID uint64, rt *route.Route,
 
 		return reportFail(nil, nil)
 	}
-	// If an internal, non-forwarding error occurred, we can stop
-	// trying.
-	fErr, ok := sendErr.(*htlcswitch.ForwardingError)
+
+	// If the error is a ClearTextError, we have received a valid wire
+	// failure message, either from our own outgoing link or from a node
+	// down the route. If the error is not related to the propagation of
+	// our payment, we can stop trying because an internal error has
+	// occurred.
+	rtErr, ok := sendErr.(htlcswitch.ClearTextError)
 	if !ok {
 		return &internalErrorReason
 	}
 
-	failureMessage := fErr.FailureMessage
-	failureSourceIdx := fErr.FailureSourceIdx
+	// failureSourceIdx is the index of the node that the failure occurred
+	// at. If the ClearTextError received is not a ForwardingError the
+	// payment error occurred at our node, so we leave this value as 0
+	// to indicate that the failure occurred locally. If the error is a
+	// ForwardingError, it did not originate at our node, so we set
+	// failureSourceIdx to the index of the node where the failure occurred.
+	failureSourceIdx := 0
+	source, ok := rtErr.(*htlcswitch.ForwardingError)
+	if ok {
+		failureSourceIdx = source.FailureSourceIdx
+	}
 
-	// Apply channel update if the error contains one. For unknown
-	// failures, failureMessage is nil.
+	// Extract the wire failure and apply channel update if it contains one.
+	// If we received an unknown failure message from a node along the
+	// route, the failure message will be nil.
+	failureMessage := rtErr.WireMessage()
 	if failureMessage != nil {
 		err := r.tryApplyChannelUpdate(
 			rt, failureSourceIdx, failureMessage,
diff --git a/routing/router_test.go b/routing/router_test.go
index 90255f60..b3470d1c 100644
--- a/routing/router_test.go
+++ b/routing/router_test.go
@@ -288,11 +288,12 @@ func TestSendPaymentRouteFailureFallback(t *testing.T) {
 
 			roasbeefSongoku := lnwire.NewShortChanIDFromInt(12345)
 			if firstHop == roasbeefSongoku {
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					// TODO(roasbeef): temp node failure should be?
-					FailureMessage: &lnwire.FailTemporaryChannelFailure{},
-				}
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					// TODO(roasbeef): temp node failure
+					//  should be?
+					&lnwire.FailTemporaryChannelFailure{},
+					1,
+				)
 			}
 
 			return preImage, nil
@@ -420,12 +421,12 @@ func TestChannelUpdateValidation(t *testing.T) {
 	// The unsigned channel update is attached to the failure message.
 	ctx.router.cfg.Payer.(*mockPaymentAttemptDispatcher).setPaymentResult(
 		func(firstHop lnwire.ShortChannelID) ([32]byte, error) {
-			return [32]byte{}, &htlcswitch.ForwardingError{
-				FailureSourceIdx: 1,
-				FailureMessage: &lnwire.FailFeeInsufficient{
+			return [32]byte{}, htlcswitch.NewForwardingError(
+				&lnwire.FailFeeInsufficient{
 					Update: errChanUpdate,
 				},
-			}
+				1,
+			)
 		})
 
 	// The payment parameter is mostly redundant in SendToRoute. Can be left
@@ -542,16 +543,15 @@ func TestSendPaymentErrorRepeatedFeeInsufficient(t *testing.T) {
 
 			roasbeefSongoku := lnwire.NewShortChanIDFromInt(chanID)
 			if firstHop == roasbeefSongoku {
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-
-					// Within our error, we'll add a channel update
-					// which is meant to reflect he new fee
-					// schedule for the node/channel.
-					FailureMessage: &lnwire.FailFeeInsufficient{
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					// Within our error, we'll add a
+					// channel update which is meant to
+					// reflect the new fee schedule for the
+					// node/channel.
+					&lnwire.FailFeeInsufficient{
 						Update: errChanUpdate,
-					},
-				}
+					}, 1,
+				)
 			}
 
 			return preImage, nil
@@ -646,12 +646,11 @@ func TestSendPaymentErrorNonFinalTimeLockErrors(t *testing.T) {
 		func(firstHop lnwire.ShortChannelID) ([32]byte, error) {
 
 			if firstHop == roasbeefSongoku {
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage: &lnwire.FailExpiryTooSoon{
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					&lnwire.FailExpiryTooSoon{
 						Update: errChanUpdate,
-					},
-				}
+					}, 1,
+				)
 			}
 
 			return preImage, nil
@@ -700,12 +699,11 @@ func TestSendPaymentErrorNonFinalTimeLockErrors(t *testing.T) {
 		func(firstHop lnwire.ShortChannelID) ([32]byte, error) {
 
 			if firstHop == roasbeefSongoku {
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage: &lnwire.FailIncorrectCltvExpiry{
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					&lnwire.FailIncorrectCltvExpiry{
 						Update: errChanUpdate,
-					},
-				}
+					}, 1,
+				)
 			}
 
 			return preImage, nil
@@ -763,20 +761,19 @@ func TestSendPaymentErrorPathPruning(t *testing.T) {
 				// We'll first simulate an error from the first
 				// hop to simulate the channel from songoku to
 				// sophon not having enough capacity.
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage:   &lnwire.FailTemporaryChannelFailure{},
-				}
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					&lnwire.FailTemporaryChannelFailure{},
+					1,
+				)
 			}
 
 			// Next, we'll create an error from phan nuwen to
 			// indicate that the sophon node is not longer online,
 			// which should prune out the rest of the routes.
 			if firstHop == roasbeefPhanNuwen {
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage:   &lnwire.FailUnknownNextPeer{},
-				}
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					&lnwire.FailUnknownNextPeer{}, 1,
+				)
 			}
 
 			return preImage, nil
@@ -805,10 +802,10 @@ func TestSendPaymentErrorPathPruning(t *testing.T) {
 		func(firstHop lnwire.ShortChannelID) ([32]byte, error) {
 
 			if firstHop == roasbeefSongoku {
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage:   &lnwire.FailUnknownNextPeer{},
-				}
+				failure := htlcswitch.NewForwardingError(
+					&lnwire.FailUnknownNextPeer{}, 1,
+				)
+				return [32]byte{}, failure
 			}
 
 			return preImage, nil
@@ -851,10 +848,10 @@ func TestSendPaymentErrorPathPruning(t *testing.T) {
 				// We'll first simulate an error from the first
 				// outgoing link to simulate the channel from luo ji to
 				// roasbeef not having enough capacity.
-				return [32]byte{}, &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage:   &lnwire.FailTemporaryChannelFailure{},
-				}
+				return [32]byte{}, htlcswitch.NewForwardingError(
+					&lnwire.FailTemporaryChannelFailure{},
+					1,
+				)
 			}
 			return preImage, nil
 		})
@@ -2539,9 +2536,7 @@ func TestUnknownErrorSource(t *testing.T) {
 			// couldn't be decoded (FailureMessage is nil).
 			if firstHop.ToUint64() == 2 {
 				return [32]byte{},
-					&htlcswitch.ForwardingError{
-						FailureSourceIdx: 1,
-					}
+					htlcswitch.NewUnknownForwardingError(1)
 			}
 
 			// Otherwise the payment succeeds.
@@ -3105,10 +3100,10 @@ func TestRouterPaymentStateMachine(t *testing.T) {
 			// called, and we respond with a forwarding error
 			case sendToSwitchResultFailure:
 				select {
-				case sendResult <- &htlcswitch.ForwardingError{
-					FailureSourceIdx: 1,
-					FailureMessage:   &lnwire.FailTemporaryChannelFailure{},
-				}:
+				case sendResult <- htlcswitch.NewForwardingError(
+					&lnwire.FailTemporaryChannelFailure{},
+					1,
+				):
 				case <-time.After(1 * time.Second):
 					t.Fatalf("unable to send result")
 				}
@@ -3129,12 +3124,14 @@ func TestRouterPaymentStateMachine(t *testing.T) {
 			// to be called, and we respond with a forwarding
 			// error, indicating that the router should retry.
 			case getPaymentResultFailure:
+				failure := htlcswitch.NewForwardingError(
+					&lnwire.FailTemporaryChannelFailure{},
+					1,
+				)
+
 				select {
 				case getPaymentResult <- &htlcswitch.PaymentResult{
-					Error: &htlcswitch.ForwardingError{
-						FailureSourceIdx: 1,
-						FailureMessage:   &lnwire.FailTemporaryChannelFailure{},
-					},
+					Error: failure,
 				}:
 				case <-time.After(1 * time.Second):
 					t.Fatalf("unable to get result")
@@ -3302,12 +3299,11 @@ func TestSendToRouteStructuredError(t *testing.T) {
 	// The unsigned channel update is attached to the failure message.
 	ctx.router.cfg.Payer.(*mockPaymentAttemptDispatcher).setPaymentResult(
 		func(firstHop lnwire.ShortChannelID) ([32]byte, error) {
-			return [32]byte{}, &htlcswitch.ForwardingError{
-				FailureSourceIdx: 1,
-				FailureMessage: &lnwire.FailFeeInsufficient{
+			return [32]byte{}, htlcswitch.NewForwardingError(
+				&lnwire.FailFeeInsufficient{
 					Update: lnwire.ChannelUpdate{},
-				},
-			}
+				}, 1,
+			)
 		})
 
 	// The payment parameter is mostly redundant in SendToRoute. Can be left
@@ -3324,7 +3320,7 @@ func TestSendToRouteStructuredError(t *testing.T) {
 		t.Fatalf("expected forwarding error")
 	}
 
-	if _, ok := fErr.FailureMessage.(*lnwire.FailFeeInsufficient); !ok {
+	if _, ok := fErr.WireMessage().(*lnwire.FailFeeInsufficient); !ok {
 		t.Fatalf("expected fee insufficient error")
 	}