What does capital mean when it comes to loans?

i got an offer to consolidate my credit cards with a loan and the guy said something about a monthly payment over 36 months with only the capital left over. what does this mean?

What does capital mean when it comes to loans?fha loan

It sounds fishy. If you are consolidating and paying for 3 years, it sounds like the deal he offered is that you pay for those 3 years and you are back owing what you owe today, the amount of what you owe. Why would anyone in their right mind do that? Maybe because it makes for lower payments today and for the next 3 years, but you%26#039;d be much better off taking out a personal loan from a bank and paying off your cards and then paying back the bank and not running up your cards again.

What does capital mean when it comes to loans? loan

I don%26#039;t think he knew what he was talking about...

If he meant that you only pay interest over the 36 months, then all you have left over after that time is the principal, not the capital.|||Capital is normally the anount you borrow before interest or charges|||OH, the guy knows what he is doing all right. Note the %26quot;key%26quot; words: all you will have left.....

He is loaning you money and showing you how cheap the payment is. And if you look ONLY at the payment, your saving a ton of money vs what your paying now. However, you are paying only the interest and nothing to the principal, (he is calling it capital). In three years, you will still owe what you owe now.

These guys are trained to confuse. Run, don%26#039;t walk away from this dude. Even if he offers another loan now, I could never get it out of my mind how he first tried to put the screws to you!