Both have their own advantages and disadvantages, so we should choose according to our personal situation. The average monthly repayment amount of capital is different, showing a state of decreasing month by month. Matching principal and interest means the same monthly repayment amount. In essence, the proportion of principal increases month by month, the proportion of interest decreases month by month, and the monthly repayment amount remains unchanged. The difference between the two:

1, the monthly repayment amount is different: the monthly repayment amount of average capital is decreasing, the average capital repayment will fix the repayment amount of the same principal every month, and the interest payment will decrease with the passage of months. Matching principal and interest means paying the same amount every month, and interest accounts for a large proportion of the amount repaid in advance.

2. The interest generated is different: the total interest of equal principal repayment is less than the total interest of equal principal repayment. For example, the loan is 500,000 yuan, the loan term is 1 year, and the annual interest rate of the loan is 4.35%. The total interest of equal principal repayment is 2356.25 yuan, and the total interest of equal principal repayment is 237 1.88 yuan. 3. Suitable for different people: General capital is suitable for people with higher income in the early stage and lower income in the later stage. Matching principal and interest is suitable for people with a fixed monthly income. 4. The advantages and disadvantages are different: the advantage of average capital is that it can save more interest, which is conducive to early repayment. The disadvantage is that the pressure of early repayment is great. The advantage of matching principal and interest is that the monthly repayment pressure is less, and the disadvantage is that more interest needs to be paid, which is not conducive to early repayment.

Second, how to quickly pay off the debt of 50,000 yuan

If you owe 50 thousand, you need to work hard to earn 50 thousand, and then apply for early repayment, so that you can pay off the debt at one time.

Early repayment

First of all, we must know that what we call "the best time to repay in advance" is a false proposition! This is because whether it is equal principal and interest or average capital, although the total interest differs a lot, there is no difference in essence, not to mention the way in which banks overcharge interest and take advantage of it. Both provident fund loans and commercial loans are repaid in advance in 1 year, the fifth year or1year and the twentieth year. As long as the interest rate remains unchanged, the bank's calculation is fair. However, for those who don't want to owe money and feel that such long-term loans bring pressure to their lives, why not choose to borrow in advance? After all, how to distribute the money in your hand depends on yourself. However, I also want to remind those long-term borrowers that there is no doubt that the loan cost will increase sharply if the loan time is too long.

So for those who want to repay the mortgage in advance, which is better, "reducing the monthly payment" or "shortening the life"? If only from the perspective of saving interest, shortening the loan period is definitely the most cost-effective. Choosing which way to save money is actually very simple, as long as you master a rule that "the more principal you want to pay back, the more interest you save". If the customer chooses to shorten the loan term and keep the monthly payment unchanged, the repayment cycle of the customer will be accelerated because the monthly repayment amount of the customer has not changed. But from the perspective of buyers, shortening the loan period is not suitable for everyone. For buyers who choose to repay the principal and interest with equal amount, when the repayment period exceeds half of the loan period, it means that nearly 80% of the interest has been paid off within this period, and the remaining monthly payments are basically principal, so it is of little significance to shorten the repayment period in advance.

In fact, reducing the monthly payment and reducing the number of years are actually the same thing. One is to reduce the monthly repayment pressure, and the other is to shorten the repayment cycle. The former is immediate and may only need to pay back half next month. It may take you several years to feel the latter, but you will be happy when the time comes, because your debt has been paid off. If you have a forecast of income fluctuation, such as a premonition that income will decline, then a better choice is to reduce monthly payment. If you just have spare money, you can choose both. Moreover, for those who prepay, generally speaking, the monthly supply should be controlled at 30%-40% of the monthly income, with a maximum of 50%. Specifically, you can make a rough calculation of the monthly daily expenses to determine the monthly repayment amount. Knowing the monthly payment and combining the total amount of loan funds, we can figure out how to arrange the loan term most reasonably.

Finally, I would like to remind you that some banks have requirements for prepayment time and liquidated damages, while others do not. When signing a loan contract, if you intend to shorten the repayment period in the future, you'd better consult the bank, understand the relevant regulations, and make a choice according to your actual situation, so as to avoid endless future troubles.

Third, how to quickly pay off the 50,000 loan? I have a headache. Please give me a suggestion.

"Lightning loan" is a credit loan product specially made by China Merchants Bank for high-quality customers. If you have financing needs such as business turnover, car purchase, decoration, shopping and travel. You don't need to provide any mortgage and guarantee, and you don't need to submit any written materials. Just log in to our mobile banking or online banking professional edition and click Apply. After approval, it will be immediately released to your debit card current account in our bank for your use at any time.

The maximum loan amount of lightning loan shall not exceed 300,000 yuan. We will verify the maximum application amount of lightning loan for you according to your business situation in our bank. If you have obtained the qualification of lightning loan, you can log in to the mobile banking APP or the online banking "lightning loan" module to check your maximum application amount.

4. I want to borrow 50,000 yuan (1-3 years to pay off). How to borrow it? That's the best (the least interest)! Thank you! The current income is 3000 yuan.

The current income is 3000 yuan. Compared with the salary and running water credit of Wuhan hukou real estate license, the loan is higher if some conditions are met.