Loans, tax & insurance

A flat fee charged on the original balance understates the cost, because you repay the principal gradually. The true APR is usually about 1.8 times the quoted flat rate — a 7.2% fee over twelve months is close to 13% APR.

Often more than nothing. The cost moves into an arrangement fee, a higher cash price, or a deferred-interest clause that back-charges the whole period if a payment is late.

Multiply by twelve for a simple annual rate. That understates the real cost whenever there is compounding or amortised repayment, which needs an IRR calculation instead.

It depends on three inputs: balance, rate and term. Early payments are mostly interest. On a 30-year loan, half a percentage point of rate moves the lifetime interest by tens of thousands.

Progressively. Moving into a higher band only taxes the income above that threshold at the new rate — the income below it keeps its old rate. Earning more never reduces take-home pay through brackets alone.

Payment history and how much of your available credit you use dominate. Account age, credit mix and recent applications make up the rest. Checking your own score does not lower it.

Exclusions, waiting periods, the definition of a pre-existing condition, and the claim conditions. Those four decide what will not be paid, which matters more than the headline cover amount.

Compare the loan rate with what the money would reliably earn elsewhere. A rate above your realistic return favours repaying; also check for early-repayment penalties.