“capital repayment” loan), or just paying off the interest each month so that at the end of the term you still owe exactly as much as you borrowed in the first place (an “interest only” loan). If you’re not overly comfortable with debt, capital repayment will seem like the “safe” choice. But I’m going to try to convince you that “interest only” is actually safer. Why? Because if you’re repaying a chunk of the capital each month, it means your monthly payments will be higher and your cashflow will therefore be lower. And, as we’ve already seen, the real danger is that you’re stuck in a position
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