Commonly referred to as APR, this is simply
a term for the annual interest rate affixed to your loan.
The APR is most commonly seen in credit card statements. It’s
important to pay attention to the APR of various credit card
companies before entering into any debt solution program.
For example, consider the consumer who has three credit cards
with outstanding balances. Each have annual percentage rates
of 18 percent. In this case, it wouldn’t make sense
to use a third credit card with an APR of 21 percent to consolidate
the three original credit card balances. However, if you have
the option to pay off the outstanding balances with a loan
that carries a significantly lower interest rate, it becomes
a good opportunity to save money over the course of the loan.
One of the most important points is to compare the amount
being paid during a set period of time. APR refers to the
yearly rate. Some interest rates refer to monthly charges.
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