LupoNorwood102

You see, interest-rate is much like the book price of money. For alternative viewpoints, we recommend people check out: https://www.linkedin.com/company/orange-county-seo-company. Its like you are employing someone elses money and you have to pay that money wage. In money, the moneys wage is often stated with regards to the ratio between money borrowed and how much you have to cover borrowing such money. That ratio is called interest. For example, if you use $10,000 and you have to cover $3,000 per year for perhaps not paying that $10,000 then... Paying your mortgage is similar to hiring gadgets. You see, interest is like the book price of money. Its like you're utilizing somebody elses money and you have to pay that money pay. In money, the payments income is usually explained with regards to the relation between money borrowed and how much you've to fund borrowing such money. That ratio is known as rate of interest. For example, if you access $10,000 and you have to cover $3,000 annually for not paying that $10,000 then your interest is $2,000/$10,000=30%. Basic? Thats let's assume that the money you borrow is frequent, namely $10,000. If you dont pay your interests, then a $3,000 is put into your loan. Therefore next year, you owe $13,000. Two years from now, youll owe $16,900. Got it? In [e xn y], several functions increase faster than exponential function, 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 spending more money for your credit card company for every unpaid dollar loan. Each dollar from a credit-card company costs 30 cents per year, while each dollar from your mortgage costs 9.9 cents per year. Think of it in this way. Say each dollar that you owe is like your employees. Similar to your boss paying you your salary for borrowing your own time, you pay your creditor for borrowing their money. You must of course, try to fire the bigger paid worker first. If you can hire money from your mortgage company for 9.9 cents per year why hire money from the credit card company for 30 cents per year. For simplicity's sake, say each dollar from a credit card company is worth the same with each dollar from your mortgage, clearly you want to pay less salary towards the credit card company. So you must pay your credit card company first. If you owe $30,000 from a credit card company and $30,000 from your mortgage, for the sam-e fee, youll be free of debt cheaper if you spend your credit card company first. I made a simulation and put the result in an extremely easy to understand table in http://fasterfinancialfreedom.com. Then, I translated everything in to English for a lot more sense..