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Cumulative Interest

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Cumulative Interest

The sum of all interest payments to date or over the life of the loan.

This is not a good measure of the cost of credit to the borrower because it does not include upfront cash payments and it is not adjusted for the time value of money. See Interest Cost.



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The trading conditions deteriorated during 2007 due to cumulative interest rate increases which, when combined with the credit crunch in the autumn, resulted in fragile consumer confidence, particularly in big ticket retail sectors such as the upholstery market.
A report to the council's policy and resources committee in October 1997 made clear that they actually borrowed pounds 101m (not pounds 78m) incurring cumulative interest payments of pounds 56.
Since the interest on a consolidation loan is less than the cumulative interest on all your other loans this reduces your debt considerably in the long run.
 
 
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