What is a principal sum?
Learn the difference between the principal and the interest. Too many of us pay off interest on loans, credit cards and the like each month without ever chipping into the core of the sums we owe. That’s how people can borrow £500 to buy a new hifi and, years later, have paid off loads of interest and STILL owe £500. That immovable sum is the principal. Look at the big picture of what you owe.
Tags: principal sum, principal vs interest
