Credit card bill explanation

by astanhaus

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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 billsinterest 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 #).

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

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