average daily balance
What Is Average Daily Balance: How It Affects Interest
Your statement lands with three numbers that don't seem to talk to each other: a balance at the top, an interest charge below it, and a minimum payment at the bottom. You paid on time. You paid a real amount, not just the minimum. The interest still looks like it came out of thin air. It didn't. The issuer built that charge from a number you never see printed on the page, one that shifts every single day of the billing cycle. Understand the average daily balance and the charge stops being
