this post was submitted on 21 Jul 2023
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Each year it compounds. They announce it in March and apply it in June.
So you have balance +7% now Next year you will have balance +7% - any payments taken from your tax return this year + new rate
Hope that makes sense.
I had a debt for over ten years and do remember seeing it index down near the start of it so it is possible, but very improbable.
Thank you!