Archive for February 2011

The Evil Effects Of Compounded Interest on Card Debt

Credit card interest can be compounded daily or monthly, which means card debt can easily get out of control if you have a high balance and high interest rates.

Most charges are computed daily, i.e. compounded daily. To calculate the daily finance charges, credit card companies multiple the daily balance by the periodic rate. This daily finance charge is calculated on a daily basis and the result is added to the outstanding balance.