HackWilloughby999

You see, interest is like the book cost of money. Its like you are using someone elses money and you have to pay that money pay. In money, the moneys income is often explained with regards to the relation between money borrowed and how much youve to cover borrowing such money. That ratio is called interest rate. For example, if you access 10,000 and you have to cover 3,000 per year for maybe not paying that 10,000 then... Paying your loan is like letting equipments. You see, interest-rate is similar to the rent price of money. Its like youre utilizing somebody elses money and youve to pay for that money wage. In money, the payments pay is frequently stated when it comes to the ratio between money borrowed and how much you have to cover borrowing such money. That ratio is called interest-rate. Dig up supplementary info on our affiliated wiki - Click here: https://www.linkedin.com/company/orange-county-seo-company. For example, if you access 10,000 and you have to pay 3,000 annually for not paying that 10,000 then your interest-rate is 2,000/10,000=30. Basic? Thats assuming that the cash you use is continuous, namely 10,000. If you dont pay your interests, then the 3,000 is included with your mortgage. Therefore next year, you owe 13,000. Two years from now, youll owe 16,900. Got it? In Math, few features increase faster than exponential func-tion, and this is one of it. If you borrow some money at 30 interest rate from a credit card company and 9.9 interest rate from your mortgage, then you are paying more money for your credit card company for every unpaid money loan. While each dollar from your mortgage costs 9.9 cents per year, each dollar from a credit-card business costs 30 cents per year. Think about it this way. Say each dollar which you owe is like your employees. Just like your boss paying you your salary for borrowing your time, you pay your creditor for borrowing their money. You need to obviously, try to fire the higher paid employee first. Why hire money from the credit-card company for 30 cents per year if you can hire money from your mortgage company for 9.9 cents per year. For simplicitys sake, say each dollar from a credit card company may be worth the same with each dollar from your mortgage, obviously you want to spend less pay towards the credit card company. Which means you should pay your credit-card company first. If you owe 30,000 from a credit card company and 30,000 from your mortgage, for that same cost, youll be free of debt cheaper if you spend your credit card company first. I made a simulation and put the result in an incredibly clear to see table in http://fasterfinancialfreedom.com. Then, I translated the whole lot in to English for even more sense..