This post is explaining how to summarize debts from real case example.
Let’s say you owe $5,600 on a credit card with a 18% interest rate, and you only make $100 payment each month – you will owe on this account for 124 months and pay a total of $6,708.54 in principle plus the 54.5031% of interest for the payment.
You have 3 debts:
- Home Loan
- Credit Card
- Car Loan
Home loan – amount of $36.000 plus 14% interest rate, $3500 for the credit card plus 18% of interest and $21.000 for the car loan with %10 of interest.
The problem is that many people make a mistake and simply calculate the debt period/time and payoff their debts, without understanding what happens behind the scene.
These posts will explain in more details how to do this:
