incurs interest

USAGE SUMMARY

"incurs interest" is correct and usable in written English.
You can use the phrase to describe a situation in which interest is paid, either due to an agreement or due to circumstances outside of someone's control. For example, "The bank loan incurs interest of 2% per month."

✓ Grammatically correct

News & Media

Wiki

Human-verified examples from authoritative sources

Exact Expressions

6 human-written examples

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

The Department for Business, Innovation and Skills – which is running the consultation – says: "We know that some students, whose religious beliefs forbid the taking out of a loan that incurs interest, may be unable to take advantage of student loans because of this change.

The Guardian

With a carry trade, an investor borrows and incurs interest costs at one rate and then applies that money which was cheaper to borrow and uses it to buy something that has higher interest rate.

Forbes

I do not want to pay on credit, which incurs interest costs and passes the costs on to my children and grandchildren.

Los Angeles Times

For example, if a late payment incurs interest at the rate of 8% and a one-time late charge of $35, you should describe this remedy.

WikiHow

Human-verified similar examples from authoritative sources

Similar Expressions

54 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

This often resulted in people repeatedly incurring interest and charges, meaning that each month their financial difficulties deepened.

The Guardian - Money

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

Expert writing Tips

Best practice

Use "incurs interest" when you want to clearly state that a debt, loan, or other financial obligation is accumulating interest charges over time.

Common error

Avoid using "incurs interest" when the subject isn't directly related to a financial obligation. Saying "the project incurs interest" is incorrect; instead, state that "the project incurs costs" or "accrues expenses".

Linguistic Context

The primary grammatical function of "incurs interest" is as a verb phrase indicating that something (usually a sum of money or a debt) is accumulating interest charges. Ludwig AI affirms that this phrase is correct and usable in written English.

Expression frequency: Uncommon

Frequent in

News & Media

35%

Wiki

30%

Formal & Business

15%

Less common in

Science

10%

Reference

5%

Academia

5%

Ludwig's WRAP-UP

The phrase "incurs interest" is a grammatically correct and commonly used verb phrase that indicates the accumulation of interest on a principal amount. As Ludwig AI confirms, it's suitable for describing financial situations across various contexts. While there are semantically related alternatives like "accrues interest" or "accumulates interest", the choice depends on the specific nuance you want to convey. Remember to use it appropriately in relation to financial obligations and avoid misapplication to general expenses.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

accrues interest

Suggests a gradual accumulation of interest over time.

accumulates interest

Emphasizes the gathering or piling up of interest.

attracts interest

Implies that the principal amount is drawing or inviting interest.

is subject to interest

Highlights that the principal is under the obligation to pay interest.

bears interest

A more formal way of saying interest is applied.

generates interest charges

Focuses on the creation of interest-related expenses.

yields interest

Indicates the production or return of interest.

carries an interest charge

Specifies that a certain expense related to interest is present.

is charged interest

Highlights the action of imposing interest.

interest is applied

Indicates the action of interest being implemented.

FAQs

How can I use "incurs interest" in a sentence?

You can use "incurs interest" to describe a situation where a sum of money is accumulating interest. For example, "If you don't pay your credit card bill on time, the balance "incurs interest"".

What are some alternatives to saying "incurs interest"?

Some alternatives to "incurs interest" include "accrues interest", "accumulates interest", or "attracts interest", depending on the context.

Is it correct to say that an account "incurs interest"?

Yes, it is correct to say that an account ""incurs interest"" if the balance in the account is subject to interest charges. However, it is more common to say that an account "earns interest" when the account holder receives interest payments.

What's the difference between "incurs interest" and "pays interest"?

"Incurs interest" describes the act of accumulating interest charges, usually on a debt or loan. "Pays interest" describes the act of making payments to cover those interest charges.