Friday, March 21, 2008

Life takes Visa..

it sure does! Visa or any credit cards put you into debt. For how long? That's depends on how fast the person pays it off. The way I use credit cards is that I pay off the full balance every month. For many others, people make minimum payment on their cards. So they have a left over balance remaining. You would think that interest will be charged on the remaining balace. That is totally untrue. Companies charge interest on the average daily balance of your credit card. If you borrowed $1000 today and pay $500 of it next month, interest is not calculated on the remaining balance (the $500). It is actually $1000 plus any other new purchases you made with the card.

You can do an internet search, "how is interest calculated on credit cards?" (remove quotation marks when you type or paste it in the search box), to learn more on how companies calculate the interest on your credit cards.

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