What is amortization
When you borrow money from someone, like the bank, you have to pay it back with interest, which is a little extra money you have to pay on top of what you borrowed.💸
Amortization is the process of breaking down your total debt into smaller, manageable payments that you make regularly over a certain period of time, like every month for 30 years.
Each time you make a payment, some of the money goes towards paying off the original amount you borrowed, and some goes towards paying the interest.
Over time, as you make more and more payments, you gradually pay off your debt until it is completely gone. 🏁 SAVE this post for when you need it!
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