The Cost of Credit
Balance calculation method (least expensive method to most expensive)
- Adjusted balance
- Average daily balance excluding new purchases
- Previous Balance
- Average daily balance including new purchases
- Two-cycle average daily balance excluding new purchases
- Two-cycle average daily balance including new purchases
The balance calculation method is used by card issuers to calculate the amount of interest you will pay them on your account balance each month. There are several different methods used to calculate the interest. Some will cost you more than others
This is a complicated area of law and an attorney should be consulted on all matters relating to bankruptcy. The information on this website is provided with the understanding that the authors and publishers are not herein engaged in rendering bankruptcy, legal, insolvency, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional bankruptcy, insolvency, tax, legal or other competent advisors. While we have made every attempt to ensure that the information contained in this website has been obtained from reliable sources, Credit Advisors Foundation and Arbor Investment are not responsible for any errors or omissions, or for the results obtained from the use of this information.