CREDIT CARDS ARE A METHOD TO MAKE PURCHASES
AND quot;PAY LATER.quot;
Most people take credit cards for granted and
DON'T make the required monthly payment by
the due date and end up paying LOTS of $ in
The BOTTOM LINE is when you use your credit
card, you have around 3 weeks or so to pay off
the ENTIRE BALANCE or you will be charged
INTEREST on how much is left.
Credit card INTEREST RATES are ANNUAL,
and are usually between 15% and 28%, which is
How credit card companies lure you in is they only
require you to make MINIMUM MONTHLY
PAYMENTS, which are only a small portion of what
you owe on the card.
EX If the annual rate for a credit card is 19%,
what is the daily rate?
EX If the daily rate is 0.049%, what is the
EX You buy a bluray player for $400 on your
credit card on Jan.5. It appears on your Jan.20
statement in the mail but you don't pay it. The
next statement is Feb.20. Calculate the interest
you'll have to pay if the annual rate is 21%.