What is APR?

Many Americans hear the term APR thrown around when it comes to borrowing money or applying for a credit card, but some may not fully understand what it means. Understanding APR and knowing your APR is an important part of borrowing money.

If you are looking into borrowing money or have questions about your current financial situation, contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561-353-2800.

Understanding the Basics of APR

APR stands for annual percentage rate. This is the total amount of interest that an individual must pay on borrowed money in the course of a year. The interest is essentially the fee a person must pay for borrowing money.

Depending on an individual’s situation and the circumstances under which he or she borrowed money, the APR may vary. For instance, the APR for a mortgage or loan works much differently than the APR for a credit card.

Mortgage and loan APRs usually vary by individual and depend on his or her credit history, as do the APRs offered by credit card companies. Information on your specific APR is available from your lending institution. Your lender must disclose the terms of your APR before you agree to borrow money or accept a credit card offer.

Contact Us

For some individuals, high APRs may lead to serious monetary problems. If you have questions about your APR or about remedying your current financial situation, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.