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    The makeup of the APR figure includes such information as :-

    · the basic rate of interest
    · initial fees to set up the transaction
    · when interest is charged (daily, weekly, monthly

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    The APR or Annual Percentage Rate was introduced by the Government to make it easier to compare the true cost of loans, mortgages, overdrafts, etc and enable consumers to see at a glance who was offering the best rates. Sadly, many of the financial institutions in the market place seem to have differing views on the exact makeup of the APR, often resulting in inaccurate data being presented.

    What Is The APR And How Is It Calculated

    In essence the APR should represent the true cost of any loan, the equivalent interest rate you pay when taking into account all charges associated with the loan. Well, that is the principal behind the APR figure but even though it was introduced by the Government these quoted rates are not monitored by any official body, and are often open to abuse.

    The makeup of the APR figure includes such information as :-

    · the basic rate of interest
    · initial fees to set up the transaction
    · when interest is charged (daily, weekly, monthly)

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    ng the best rates. Sadly, many of the financial institutions in the market place seem to have differing views on the exact makeup of the APR, often resulting in inaccurate data being presented.

    What Is The APR And How Is It Calculated

    In essence the APR should represent the true cost of any loan, the equivalent interest rate you pay when taking into account all charges associated with the loan. Well, that is the principal behind the APR figure but even though it was introduced by the Government these quoted rates are not monitored by any official body, and are often open to abuse.

    The makeup of the APR figure includes such information as :-

    · the basic rate of interest
    · initial fees to set up the transaction
    · when interest is charged (daily, weekly, monthly

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    What Is The APR And How Is It Calculated

    In essence the APR should represent the true cost of any loan, the equivalent interest rate you pay when taking into account all charges associated with the loan. Well, that is the principal behind the APR figure but even though it was introduced by the Government these quoted rates are not monitored by any official body, and are often open to abuse.

    The makeup of the APR figure includes such information as :-

    · the basic rate of interest
    · initial fees to set up the transaction
    · when interest is charged (daily, weekly, monthly

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    e loan. Well, that is the principal behind the APR figure but even though it was introduced by the Government these quoted rates are not monitored by any official body, and are often open to abuse.

    The makeup of the APR figure includes such information as :-

    · the basic rate of interest
    · initial fees to set up the transaction
    · when interest is charged (daily, weekly, monthly

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    >

    The makeup of the APR figure includes such information as :-

    · the basic rate of interest
    · initial fees to set up the transaction
    · when interest is charged (daily, weekly, monthly)
    · plus any other costs associated with the transaction (e.g. compulsory insurance cover, etc)

    Sounds simple? In theory it is very simple but it depends how the information is presented and above all, the small print. For example you may see the following offers in the press :-

    · We offer loans at rates as low as 6% APR.
    · We offer loans at rates as low as 5.9% APR (plus a ?100 initial set-up fee)

    Initially your eyes would be drawn to the lower APR of 5.9%, but would you notice the extra initial charge of ?100? When taken into account in the APR (as it should be) the extra charge may well push the “true” APR over 6%, making it more expensive than the flat 6% APR (which seems to include ALL charges). This is the kind of slight of hand that some financial institu

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