incur interest

USAGE SUMMARY

The phrase "incur interest" is correct and can be used in written English.
It is often used in a financial context and means to accumulate or be charged interest for a loan or debt. For example, "I incurred interest on my credit card earlier this year when I missed a payment."

✓ Grammatically correct

News & Media

Formal & Business

Wiki

Human-verified examples from authoritative sources

Exact Expressions

8 human-written examples

This article was amended on 23 September to correct an erroneous statement that Acumen doesn't incur interest or otherwise profit financially from its deals.

The Guardian

However, there is profit to be had in those cases where borrowers are unable to meet that repayment and so incur interest charges, and it is these people precisely who should not be accessing more credit".

The Guardian - Money

They usually have little choice but to pay their wages into a bank account which may be nominally free to use but on which they invariably incur interest and charges by overdrawing.

The Guardian - Opinion

But with the Barclaycard offer there is a catch that will put many people off: you will incur interest on all items you buy, at your standard purchase rate, until you repay all of this money, even if you repay your monthly spend in full each month.

The Guardian - Money

Barclays said its standard charge ranged from 75p a day up to £1,000 to £3 a day over £2,000, while RBS and NatWest said they would apply interest and a £6 monthly fee, and HSBC said its customers would only incur interest as it did not charge set-up or usage fees.

The Guardian - Money

They are as likely as anybody else to be spending money on child support or alimony a proxy for failed marriages and they are as inclined as other folk to incur interest payments on credit cards.The picture that emerges is one of religious types engaging in sensible, but not self-denying, behaviour.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

51 human-written examples

First, as these are borrowed funds, they are already incurring interest charges.

The New York Times

Mr. Norton said A.I.G. had incurred interest and fees of about $331 million so far.

The New York Times

Of that, almost $16,000 is credit card debt, of which more than $5,700 is incurring interest charges of 25percentt.

The New York Times

Any resulting balance must be paid within 10 working days after the specific dues are known, otherwise it incurs interest.

The Guardian - Money

It states: "Failure to pay a £200 debt in 12 months incurs an interest charge of £60.69, and the new balance of £260.69 then incurs interest at a typical rate of 34.9% until repaid".

The Guardian - Money

Expert writing Tips

Best practice

When discussing financial obligations or debts, use "incur interest" to clearly indicate that interest is being accumulated or charged on a principal amount.

Common error

Avoid using "incur interest" when you actually mean to refer to the principal amount of a loan or debt. "Incur interest" specifically relates to the cost of borrowing money, not the initial sum borrowed.

Linguistic Context

The phrase "incur interest" primarily functions as a verb phrase, indicating the action of accumulating or becoming subject to interest charges. As Ludwig AI confirms, it's commonly used in financial contexts to describe the consequence of borrowing or owing money.

Expression frequency: Uncommon

Frequent in

News & Media

48%

Formal & Business

29%

Wiki

12%

Less common in

Science

7%

Reference

4%

Encyclopedias

0%

Ludwig's WRAP-UP

In summary, "incur interest" is a grammatically correct and commonly understood phrase that describes the accumulation of interest on a debt or loan. Ludwig AI confirms it is often employed in financial contexts. While it may not be as frequent as some other financial terms, it’s important to use it correctly to convey accurate information about financial obligations. Be mindful to differentiate "incur interest" from other related financial terms and to follow best practices in writing to ensure clarity. It is often found in "News & Media", "Formal & Business" and "Wiki" contexts, while less frequently in "Science".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Accrue interest

Focuses on the gradual accumulation of interest over time.

Be subject to interest

Highlights the obligation to pay interest.

Be charged interest

Emphasizes the action of interest being applied by a lender.

Accumulate interest charges

Specifies that charges related to interest are building up.

Carry interest

Implies that a balance or debt is accumulating interest.

Generate interest expenses

Highlights that interest expenses are being produced.

Become liable for interest

Emphasizes the legal obligation to pay interest.

Run up interest

Suggests a potentially unintended accumulation of interest.

Fall liable for interest

Suggests an unintended situation where someone becomes responsible for paying the interest.

Be assessed interest

Emphasizes the evaluation of interest being applied.

FAQs

How to use "incur interest" in a sentence?

You can use "incur interest" to describe situations where a debt or loan accumulates interest over time. For example, "If you don't pay your credit card balance in full, you will "incur interest" charges."

What can I say instead of "incur interest"?

You can use alternatives like "accrue interest", "be charged interest", or "accumulate interest charges depending on the context".

Is it better to avoid "incur interest"?

While it's financially prudent to avoid "incur interest" by paying debts on time, the phrase itself is perfectly acceptable and commonly used in financial discussions. The key is to manage your finances to minimize interest charges.

Which is correct, "incur interest" or "gain interest"?

"Incur interest" refers to the accumulation of interest on a debt, while "gain interest" refers to earning interest on an investment or savings account. They have opposite meanings and are used in different contexts.