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| Subject: Re: The Power Of Compounding | Date: 2/6/2013 11:55 AM | |
| Author: vkg | Number: 306769 of 307100 | |
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I'm sorry, I just don't remember this when we carried a balance. And they said the disclosure was a change... I don't know of any credit card that has a grace period when carrying a balance. Maybe they didn't add the current interest charges into the daily balance calculations for interest charges. If it is a change, then it would increase interest charges. Assuming that the payment is always a month after the close of the billing cycle, the additional interest would be Average Balance * (1/12 interest rate) * Interest rate. For most customers that carry a balance, the difference will be small. Annual difference per $1,000 with 12% interest $1,000 * 1% * 12% = $1.20 Even this amount should be decreased by paying early in the billing cycle. When carrying a balance, there is no grace period. The primary concern should be the eliminating the balance. |
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