Your Net WorthAPR
APR is the annual percentage rate: the yearly cost of borrowing, including interest and most fees, expressed as a percentage of the balance.
APR stands for annual percentage rate. It rolls the interest rate and most compulsory fees into a single yearly figure, which makes it the cleanest way to compare two credit products.
On a credit card, the APR is applied monthly: each month the issuer charges roughly one twelfth of the APR on your outstanding balance. A card at 24.9% APR charges about 2.075% of the balance every month. On a £5,000 balance that is over £100 of interest a month before your payment touches the principal.
APR is the single most important number when you rank debts for payoff. The avalanche method orders debts by APR, highest first, because that order minimises the total interest you pay.