1. Equal principal and interest means that the monthly repayment amount remains unchanged during the whole repayment period (the proportion of principal and interest will change constantly, and the proportion of interest in the previous period is large. With the continuous repayment, the interest ratio will decrease month by month, and the principal ratio will increase month by month.
It is more convenient to arrange income and expenditure in this way.
2. The average capital divides the total loan into equal parts, and then pays the same amount of principal and interest generated by the remaining loans in that month every month, so the monthly payment will be less and less.
Compared with the equal principal and interest, the total interest is less, and the later it is, the easier it is.
However, the early repayment burden is heavy, so the demand for economic income level is higher.
From this, we can get:
1, equal principal and interest is more suitable for people with stable income.
2. Average capital is more suitable for people who have a certain economic foundation and can bear heavy repayment pressure in the early stage.
No matter what repayment method you choose, you must pay attention to repayment on time to avoid overdue.
If you have sufficient funds at hand later, you can also repay in advance.
If the online loan is overdue, you can get a big data report from Sixi Data, find out your overdue records, and classify your online loans into formal and informal, with credit and without credit. If you want to pay back the money but don't have enough funds, then negotiate with the online lending platform to give priority to formal credit reporting and reduce the impact on yourself.
Extended data:
How to calculate the equal principal and interest of mortgage loan 20 years in advance?
If the principal and interest of the mortgage is equal to 20 years, choose to repay in advance, and the subsequent interest will not be calculated according to the total loan amount, but according to the remaining outstanding loans. It is precisely because of this that interest rates can be reduced.
And you can choose to reduce the monthly payment according to your own economic situation and repayment ability, and keep the repayment period unchanged; Or choose to shorten the repayment period and keep the monthly payment unchanged.
It should be noted that the interest that can be reduced or exempted varies with the time of prepayment.
If you choose to repay in advance at the later stage of repayment, the interest will be almost the same at that time, and even if you repay in advance, it will not reduce much interest, which is not very cost-effective.
If you choose to repay in advance in the middle and early stages of repayment, you can reduce more interest.
It should be noted that the loan term is 20 years, usually around the seventh year, and the proportion of interest in monthly repayment will gradually be smaller than the proportion of principal. Therefore, it is best to repay in advance in the first seven years.