What Is APR And Why Should You Care

Essentially, APR (Annual Percentage Rate) is how much it costs to borrow money. It is the interest rate stated as a yearly rate. As well as the interest you pay on your credit, APR includes any fees and other charges such as admin fees or broker fees. It is a total charge for the loan for each year of the credit agreement.

Lenders are required by law to show the Representative APR rate on any consumer credit agreements. And, if you are comparing loans, then APR is an important factor to look at as part of your decision.

For example;

A loan from one lender may have lower interest rates than a loan from another, but the fees with the first may be higher. If you only compare interest rates, the first lender could look like the better option. But, when you compare APR, the interest and fees are included, so you may find that second lender is the better option overall.

Why should you care about APR?

It’s super important that you’re aware of the APR you’re paying on any debt you take out, because it’s the price you pay to borrow the money.

In general, you may want to stay away from debt with high APRs, as the interest payments could end up overwhelming your budget. But even if you manage to find debt with low APRs, taking out too much debt could cause you problems.


Is debt making you feel:

  • OUT OF CONTROL and there is nothing you can do about it.

  • HOPELESS especially if your debt is getting worse.

  • EMBARRASSED to talk to anyone about your financial situation.

  • DEPRESSED and anxious every time the phone rings

FREEZE is here to help you find a debt solution and put your mind at ease.

Freeze Debt Ltd is registered in England and Wales. Registered Number 11842271. 


The information contained within the website is subject to the UK Regulatory Regime and is therefore targeted at consumers based in the UK.


Freeze debt is an information-based service only, at no point do we give you advice on which debt solution is best. We provide you with information so you can make an informed decision on which solution fits your needs.


  • Facebook Social Icon
  • Instagram
  • Twitter