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Topic Two-Cycle Average Daily Balance Method
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By val
On 03/02/00
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Can someone explain me this method of payment?
Does this method require paying the whole amount each month, or can I pay at least thr minimum payment?
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By colin
On 03/02/00
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You do not have to pay off the balance each month with this method. If you carry a balance from month to month you will not see a difference with this method and if you pay your balance each month you will see no difference. However, if you switch between paying your balance off each month and carrying a balance, you will see "two billing cycles" worth of finance charges on your bill each time you start carrying a balance.
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By val
On 03/02/00
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thanks a lot (-:
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By g-man
On 06/17/00
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I would stay away from these kind of cards. If you don't pay it off every month, you could wind up paying more interest than a card that doesn't have two cycle billing. For example, if you carried a balance of $2,500 one month and paid down $1500 of it leaving you with only $1000 to pay off. The next month you will pay interest on the average of $2500 and $1000 and not just the $1000 you have left.
Beware. This is one of the 'tricks' credit card companies do to make more money.
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your questions are answered by the gromco team and card users like you
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