1. APR

3. Short term loans Representative example Borrow: £300 for 30 days Interest rate: 292% p.a. fixed One repayment of: £372 Total charge for credit: £72 Representative APR: 1272%

4. Borrow: £300 for 30 days Amount borrowed will vary ‘Term’ of loan will vary

5. Interest rate: 292% p.a. fixed Simple interest 0.8% per day 0.8% × 365 = 292%

6. One repayment of: £372 Often more than one repayment Total borrowed + interest May also include an admin fee

7. Total charge for credit: £72 Total repayable – total borrowed Interest + fees

8. Representative APR: 1272% Annual Percentage Rate The official rate for borrowing Legal requirement in UK Includes all fees Allows comparisons

9. Representative APR: 1272% Compound interest: x = APR n = number of years A = amount borrowed In this example: