I was tagged by the I was tagged by this sweet person who said that they didn’t understand all of this until they started following me so thank you welcome hello let’s explain okay so when you take out a loan the original amount you take out is called the principal let’s say you take out a thousand dollar loan that is the principal then you have interest on top of that principle that’s the cost of going into debt right so let’s say you have a thousand dollar loan with 25% interest any money that’s on top of that that’s now accumulating is the interest so how do you pay off debt well you try to pay off the principle because if you make the original amount go down well suddenly then you’re paying less in interest so if you’re contributing any extra money to the loan you wanna contribute it to the principle not just the total balance so in addition to let’s say a 250 dollar monthly payment do you wanna send any extra money to just the principal companies know this they try to keep you in debt so they make sending money just to the principal difficult