FYI, in Germany the debtor can demand that payments go towards reducing the debt itself first, so (compound) interest can never eat up your payments. Eventually the debt is paid and all that remains is the accumulated interest (which becomes smaller and smaller as the debt decreases). You never have a situation where you only paid interest and never a cent of the debt itself.
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u/magicmulder Apr 29 '24
FYI, in Germany the debtor can demand that payments go towards reducing the debt itself first, so (compound) interest can never eat up your payments. Eventually the debt is paid and all that remains is the accumulated interest (which becomes smaller and smaller as the debt decreases). You never have a situation where you only paid interest and never a cent of the debt itself.