pay interest

Meaning

To pay an extra charge or fee to a lender for the privilege of borrowing money. This fee is usually calculated as a percentage of the total amount borrowed (the principal) over a specific period of time.

Examples

• If you don't clear your credit card balance, you will have to pay interest.

  If you don't clear your credit card balance, you will have to pay interest.

• We are paying interest at a rate of four percent on our mortgage.

  We are paying interest at a rate of four percent on our mortgage.

• How much interest do you have to pay on that personal loan?

  How much interest do you have to pay on that personal loan?

• I prefer to pay off my debts quickly so I don't pay interest for years.

  I prefer to pay off my debts quickly so I don't pay interest for years.

• The bank requires borrowers to pay interest monthly.

  The bank requires borrowers to pay interest monthly.

Common Mistakes

• ✗ I have to pay interests on my student loan.

  ✓ I have to pay interest on my student loan.

  In this financial context, 'interest' is an uncountable noun and should not be made plural.

• ✗ The bank makes me pay interest for my credit card.

  ✓ The bank makes me pay interest on my credit card.

  We use the preposition 'on' (not 'for' or 'of') to specify the loan, card, or account that accumulates interest.

Related Expressions

Practice

• If you carry a balance on your card, you will start to ___.

  💡 Pay an extra percentage fee on borrowed money.

  Show answer

  pay interest

• Nobody wants to ___ on a loan if they can avoid it.

  💡 Give extra money to the lender.

  Show answer

  pay interest