APR do you really understand it?

[Shambler]

Im amazed at the amount of people quoting APR when talking about loans. I generally think people don't have a clue and pay more attention to APR than to what amount they are paying back in interest. Do so many people not realise how misleading APR can be?

[Shambler]

TheHound said:

I agree APR can be very misleading and don't think it is a good way to "sell" credit. Maybe its just because I'm good at numbers but I would much rather see the flat rate and work the costs out from that.

Absolutely. It amazes me that people will look at a loan over 5year borrowing £20000 and compare it with an APR for borrowing the same amount over ten years with a higher rate of interest and still believe they are getting a better deal.