A discount changes the purchase price once. Carrying the balance can add interest month after month, especially when only the minimum is paid.
Use the statement warning
Card statements estimate the time and interest required under minimum payments. The table turns an abstract APR into a real timeline.
Promotional rates have endings
A zero-percent offer can be useful, but the expiration date and transfer fee belong in the calculation.
Stop adding to the balance
A payoff plan works faster when new spending moves to a payment method that is paid in full.
Sources
- Consumer Financial Protection Bureau, Credit Card Interest and Repayment Disclosures.