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Loan interest pays down debt?
Posted: Sun May 22, 2016 1:37 pm
by WilliamMGary
I almost never borrowed money so please pardon me on this silly question, but did the loan interest payments always pay down a portion of the debt?
Re: Loan interest pays down debt?
Posted: Mon May 23, 2016 12:00 pm
by radovan
No, loan interest does not pay down the debt in game. It may seem so with inflation turned on, but the reduction of debt is only caused by borrowed money losing its initial value not by payments.
Re: Loan interest pays down debt?
Posted: Mon May 23, 2016 1:48 pm
by WilliamMGary
That must be it. Guess I need to start paying down the debt.