Secret Interest Rates? - McCarthy Law PLC
April 18, 2012

Secret Interest Rates?

Did you know that interest on your credit card compounds daily if you carry a balance?  I am not really shocked by this “secret” that is unveiled in the following article.  What I am shocked about is the fact that more people don’t know about this.

Yes, folks, it’s true.  If you fail to pay off your balance at the end of the month, interest compounds daily on the balance you carry.  As this article discusses, most people don’t know this since the only thing they see on their credit card bill at the end of the month is a total of the finance charge for the previous month.  The article does give one good piece of advice that I’m sure many never consider.  Don’t wait until the due date to make a payment if you can pay earlier.  This will reduce the amount you pay back to your creditors over time.  And if that gives you a couple of extra bucks at the end of the month?  Go crazy and treat yourself to something little you have otherwise cut from your budget.

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