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. Incorporated in England and Wales, with company number 11842271 and having its registered office at Ambler House, Trevelyan Square, Leeds LS1 6ED.  Freeze Debt Ltd is an Appointed Representative of Blackberry Finance Limited. Our Firm Reference Number is 840092. You can check these details on the register: https://register.fca.org.uk.

Jason Peter Bowen is Authorised to Act as an Insolvency Practitioner, in the UK, by the Insolvency Practitioners Association, IP Number 22150. All Insolvency services are provided in partnership with The Debt Resolution Service. The Debt Resolution Service is registered in England and Wales. Registered Number12692223 and having its registered office at Mills Hill Works, Corbrook Road, Chadderton, Oldham, OL9 9SD.


Freeze Debt provides insolvency solutions to individuals throughout the UK. 

  • Facebook Social Icon
  • Instagram
  • Twitter
  • LinkedIn