Credit card bill explanation
by astanhaus
Creditor, how much do I owe?
I am not alone in thinking credit card companies make it super difficult to know what # I need to pay on my credit card bill.
Dudettes, this is the deal.
It took me a few bills, interest payments, and awkwardly asking to figure out I owe the larger #, named “new balance” on my bill.
The TINIER #, named “minimum payment” on my bill, is the LAME #. It is the absolute minimum I have to pay.
If a date only paid a teeny-tiny portion of the bill and left me to pay the rest—bye bye, buster!
Creditors like me to pay the LAME #, so they make $$ (i.e. interest payments) off me.
I try to pay large because I’m in charge when I pay in FULL (AKA pay the new balance #).
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)
