Loan interest
Date: Thu, 01/29/2009 - 17:33
Is interest paid first for a loan, specifically a consolidation loan? I am looking at getting a debt consolidation loan and paying it off over 5 years. I will probably be able to pay it off in 3-4 years, but will I have paid the 5 years worth of interest upfront?
No, most interest is calculated on a simple interest method, mea
No, most interest is calculated on a simple interest method, meaning they charge daily interest on your principle balance. All the interest is not paid up front, it is charged over time. So if you pay if off a year early, you will save a year worth of interest.
Debt Consolidation Loan is nothing but a personal loan.
Debt Consolidation Loan is nothing but a personal loan.
