Credit Costs
Examples of credit card costs
|
average
daily balance |
adjusted
balance |
previous
balance |
| monthly |
1.5% |
1.5% |
1.5% |
| rate |
18% |
18% |
18% |
| previous balance |
$400 |
$400 |
$400 |
| payments |
$300 |
$300 |
$300 |
| On 15th day |
(new balance=$100) |
| average daily balance |
$250* |
N/A |
N/A |
| finance charge |
$3.75
(1.5% x $250) |
$1.50
(1.5% x $100) |
$6.00
(1.5% x $400) |
|
* To figure average daily balance:
($400 x 15 days) + ($100 x 15 days) = $250 x 30 days |
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