Learn · Getting steady

Interest

What it costs to owe money, as a share of what you owe each year.

Where you see it

The yearly rate on each card and loan, and what it costs you each month.

What it means

When you don't pay a card in full, the card company charges you for the rest. That charge is interest, shown as a percentage a year. On cards it's often a fifth or more of what you owe every year, which adds up fast. Paying the whole statement by the due date usually means no interest at all.

Why it matters

Interest is money you pay for nothing new, so less of it leaves more for you.

What to do

See what your debts cost in WealthyJack.

Banks call this the APR when it's given as a yearly rate.