Credit Cards: Pros & Cons
4.7 هزار بار بازدید -
6 سال پیش
-
Credit cards have ruined lives,
Credit cards have ruined lives, but should you be afraid of them? Let's take a look at some of the good, and the bad that goes with getting a credit card.
Further reading about the daily balance method discussed in the video:
The daily balance method uses the actual balance on each day of a billing cycle instead of taking the average balance throughout the month.
Going back to the example explained in the video, let's consider a situation where you have a $100 balance and an annual percentage rate of 20%. An APR of 20% gives you a daily interest rate of 0.0548%.
So how is your monthly interest calculated?
Interest Paid = (Day 1 Balance * 0.0548%) + (Day 2 Balance * 0.0548%) + … + (Day 30 Balance * 0.0548%)
This comes out to about $22 in interest for the year.
You can find further reading about the daily balance method here:
https://www.thebalance.com/daily-bala...
And you can find further reading about spending more with credit cards here:
https://www.nerdwallet.com/blog/credi...
DISCLAIMER: The information provided by Five Minute Finance and from any communication related to Five Minute Finance is for education purposes only. The creator(s) of Five Minute Finance is not registered to provide investment advice and as such does not make any recommendation or endorsement as to any investment, advisor, or other service or product or to any material submitted by third parties or linked to this channel. Five Minute Finance does not hold itself out as providing any legal, financial, or other advice. No content provided by Five Minute Finance constitutes - or should be understood as constituting - advice and you should not rely on any material by Five Minute Finance to make (or refrain from making) any decision or take (or refrain from taking) any action. We make financial suggestions and it is up to our visitors to make their own decisions, or consult with a registered professional.
Music: https://www.bensound.com/royalty-free...
Further reading about the daily balance method discussed in the video:
The daily balance method uses the actual balance on each day of a billing cycle instead of taking the average balance throughout the month.
Going back to the example explained in the video, let's consider a situation where you have a $100 balance and an annual percentage rate of 20%. An APR of 20% gives you a daily interest rate of 0.0548%.
So how is your monthly interest calculated?
Interest Paid = (Day 1 Balance * 0.0548%) + (Day 2 Balance * 0.0548%) + … + (Day 30 Balance * 0.0548%)
This comes out to about $22 in interest for the year.
You can find further reading about the daily balance method here:
https://www.thebalance.com/daily-bala...
And you can find further reading about spending more with credit cards here:
https://www.nerdwallet.com/blog/credi...
DISCLAIMER: The information provided by Five Minute Finance and from any communication related to Five Minute Finance is for education purposes only. The creator(s) of Five Minute Finance is not registered to provide investment advice and as such does not make any recommendation or endorsement as to any investment, advisor, or other service or product or to any material submitted by third parties or linked to this channel. Five Minute Finance does not hold itself out as providing any legal, financial, or other advice. No content provided by Five Minute Finance constitutes - or should be understood as constituting - advice and you should not rely on any material by Five Minute Finance to make (or refrain from making) any decision or take (or refrain from taking) any action. We make financial suggestions and it is up to our visitors to make their own decisions, or consult with a registered professional.
Music: https://www.bensound.com/royalty-free...
6 سال پیش
در تاریخ 1397/11/01 منتشر شده
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