<< It's best to not carry a balance and avoid the confusion.>>I Agree with you. But not all people dont have that luxury. Maybe this will help explain what I mean.Start Balance $1000.00 Jan 1.APR: 18.9%/Daily Periodic rate: 0.05178%Assume: 5% min payment Required Two Billing Cycle Billing Intrest Payment New Cycle Days Accured Req BalanceJan 30 15.53 0.00 1015.53Feb 28 14.72 51.51 978.74Mar 31 15.71 0.00 994.45Apr 30 15.45 50.50 959.40May 31 15.40 0.00 974.80Jun 30 15.14 49.50 940.44TOTAL 91.95 151.51 Traditional one billing cycle Billing Intrest Payment New Cycle Days Accured Req BalanceJan 30 15.53 50.78 964.52Feb 28 13.98 48.92 929.58Mar 31 14.92 47.23 897.27Apr 30 13.94 45.56 865.65May 31 13.90 43.98 835.57Jun 30 12.98 42.43 806.12TOTAL 85.25 278.90The credit card company adds 7.2% to the money they would make off of you in this scenario. and your over all balance is 14.3% higher than it would be even just paying the minimum. That means your paying much longer on it and end up paying more intrest costs. The big selling point to some consumers is they get away with only paying only 45% of what you would have had to pay using the traditional monthy installment.As Tony points out.. Who cares if your paying it off. But there are a number of us fools that are working on getting rid of the debt or ppl that havnt waken up to realizing they are just throwing money away.Be aware though that some cards are lowering the grace periods on their cards or eliminating them outright. So even in Tony's case, you still would be paying intrest on a charge the day its posted, regardless of wether you pay your card monthly.Hope this helped...RobBottles
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