John Lewis Loan statement query

iamthedon

Hi all, 
I've just received my first statement for a loan from John Lewis. Under the fixed monthly cost ("Direct Debit Transaction") is a line item titled "Debit Interest". This amount varies by a couple of quid each month. Can someone explain what this line item is? I've never seen it on a previous loan statement from other lenders. Obligatory "sorry if this is a stupid question"! Thanks. 

[Deleted User]

It's the interest you're charged for the loan each month.  

It generally declines as the balance reduces, but occasionally goes up based on the number of days in the month.

lopsyfa

The interest is charged monthly. At the end of the month, that interest is added to the balance and any payment made is taken away from it to get the new balance. Since your monthly payment is more than the interest added, you outstanding balance then reduce gradually every month. Because the interest is calculated on the outstanding balance, the interest added will decrease with the outstanding balance.