Interest Rates and you

Credit card interest rates are one of those we often don’t think about we. We rack up charges, pay off some of the bill, but the charges keep accruing because we didn’t pay it off. The basics of a credit card is that if you don’t pay off the loan in a month, the interest starts accruing. The 20% you see wouldn’t show up that month, but instead it is a portion. So if you have $1000 in charges, you’d accrue 20%/12 or 1.67% so you’d have $1167 due next month instead. Just remember that dropping it a bit and you’ll save cash. Even a decent drop of 8% will change that $1167 to $1100.

Ideally pay off your credit cards every month.