How to understand the repayment methods of credit respectively?

Simple understanding: the total amount of your monthly repayment is part of the principal and part of the interest.

For example, a monthly salary of 2000.

Average capital: that is, interest and principal are 65,438+0,000 respectively. Monthly repayment makes the principal less and less, so your interest is less and less, and the monthly repayment amount decreases month by month.

Equal principal and interest: pay interest first, then principal. With the benchmark interest rate unchanged, your repayment amount is always 2,000 yuan, with the previous interest accounting for about 1700 and the principal of 300 yuan. Late repayment is basically the principal, so it is not recommended to choose this early repayment.