Let’s start from a simple example from real life.
If 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?
Let’s use this theory in real life cases
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.
Many people make a mistake and simply calculate the debt period/time and payoff their debts, without understanding what happens behind the scene.
Our goal is to make people learn how to properly calculate your debts. Only then you can make a payment plan to kill big interest rates and cut down your debts or becoming totally debt free.
For some of the post with example you might need a calculator – get used to it 
Ok, learning to summarize the debts – please go to the post with numbers and calculations of piling up the debts.
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