Have you ever wondered what your loan is actually costing you? In this episode, we break down the Annual Percentage Rate (APR), the standardized metric designed to help borrowers compare lenders. We explore the crucial difference between "nominal" APR and the "effective" APR, revealing how compounding interest can make your true costs significantly higher than the advertised rate.

Join us as we discuss:

• The Math of Debt: How APR is calculated for mortgages, credit cards, and car leases (including the "money factor").
• The "Junk Fee" Loophole: Why APR fails to capture every cost, often excluding specific closing costs, third-party fees, and penalties.
• Comparing Apples to Oranges: Why you can't compare the APR of a 15-year loan to a 30-year loan, and why the metric is misleading for short-term payday loans.
• Global Standards: How truth-in-lending regulations differ between the US and the European Union.

Tune in to learn how to read the fine print and calculate the real price of your debt.