Economy
Why loan payments barely reduce debt at first
HERE’S THE INTERESTING PART
When you finally secure a massive long-term loan, your first few years of diligent payments are essentially a mathematical mirage. Thanks to amortization schedules, nearly every dollar you send initially just covers the bank's compounding interest, barely grazing the actual principal. You are essentially renting your own debt for a decade before you even begin to actually pay it off.
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