When we take out a loan with a bank the bank creates new money. The bank lends it to us and we repay with money. The amount we repay is the amount of interest paid over the time of the loan. The bank, when it receives the money, destroys it.
Envesting does not repay with money. Hence the amount of money saved with Envesting is the amount of interest created by the loan.
If the Bank does not destroy the repaid money the extra money created is interest on interest.
For a house loan of $100,000 at 6% over 25 years this is $95,566 in total interest. Of this $20,566 is interest on interest.
This is the cost we pay for a financial system where we create money and destroy it. This is money extracted from the productive economy and moved to the finance sector. It is the price we pay for the finance system to preserve the value of money.
Using finance where money is NOT destroyed when it is repaid will cost about 2% of the value transferred.