After knowing how ants borrow money to repay, careful friends found that their borrowing money has been upgraded and the total interest has also increased. Tomorrow, the interest rate is still 0.04%. Why does the interest that needs to be repaid now increase?
The difference is that the original repayment method is equal principal, but now it has become equal principal and interest and interest before principal.
Equal principal is to divide the loan amount equally according to the total months of repayment, plus the monthly interest of the remaining principal in the previous period to form a monthly repayment amount. Therefore, the monthly repayment amount of the equal principal method is different. The repayment amount in the first month is the most, and then decreases month by month. The more, the less.
The characteristics of equal principal and interest are: the monthly repayment amount is the same. In the distribution proportion of "principal and interest" for monthly payment, the proportion of interest returned in the first half of the period is large and the proportion of principal is small. After half of the repayment period, it gradually turns into a large proportion of principal and a small proportion of interest. The total interest paid is more than the equal principal method, and the longer the loan term, the greater the difference in interest.
Interest before cost is the interest that only needs to be repaid on the bank loan amount every month. After maturity, the loan principal will be repaid at one time, in which the monthly interest is the annual interest divided by 12. The repayment pressure in the last month of this method is very great. If we only pay attention to the amount of interest, under the condition that the interest and borrowing time are equal, the equal principal is equal to the equal principal and interest.
Then, after knowing how to repay the ant loan, there are different repayment methods. How should we choose the appropriate way to repay it?
Which is more suitable for you, equal principal and interest, first interest and then capital
If you don't consider the interest, only consider the problem of your own repayment pressure: you think you have a strong repayment ability some time ago, and it may be more difficult later. It is recommended to choose the same amount of principal;
Each month's repayment ability is the same, or the later the repayment ability is stronger, you can choose the equal principal and interest method to evenly disperse the pressure;
If you may not have so much money to pay back in the early stage, you can choose the method of interest first and then capital. You can pay back the interest every month, and then pay back the principal and the interest of the current month in the last month; however, if there are many variables, you should pay attention to the risk. After all, the repayment pressure is concentrated in the last month. If you fail to pay back when due, it is not easy to borrow again in the later stage.
To sum up, friends who have not been invited to experience the new version this time should enjoy it secretly. Although the amount has not been increased, the interest is less than that of friends in the new version! The same sentence: friends who are not in urgent need or whose net income cannot cover the interest should try not to borrow money.