Finance Direct debit and payments Why do I pay more interest and less depreciation in the first periods of my loan/financing than in the later periods?

Why do I pay more interest and less depreciation in the first periods of my loan/financing than in the later periods?

We amortise your loan/financing on an annuity basis. The monthly instalment consists of both interest and principal repayment. The composition of this amount changes over the duration of the loan. The part allocated to principal repayment increases, while the part allocated to interest decreases over time.

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