If you’re like many Americans, you probably have at least some debt to your credit card company. But what is this debt actually called? Read on to find out.
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The Outstanding Balance
The amount of money you still owe to your credit card company is called the outstanding balance. This is the total amount of money you owe on your credit card, including any interest and fees. Your outstanding balance will change every day, depending on your credit card activity.
What is the outstanding balance?
The outstanding balance is the amount of money you still owe to your credit card company. This figure is usually calculated by subtracting the amount of money you have paid from the total amount of money you owe.
How is the outstanding balance calculated?
The outstanding balance on your credit card is the total amount of money you still owe to your credit card company. This amount is calculated based on your previous transactions and payments, and it will fluctuate depending on your spending and payment habits.
If you have been making frequent purchases with your credit card and have not been paying off your balance in full each month, then your outstanding balance will continue to grow. On the other hand, if you have been diligent about making payments and have been keeping your spending under control, then your outstanding balance should shrink over time.
Paying off your outstanding balance is important because it will help you avoid paying interest on your debt. Credit card companies typically charge high interest rates on unpaid balances, so it is in your best interest to pay off this debt as soon as possible. You can use our credit card payoff calculator to estimate how long it will take you to pay off your outstanding balance based on different payment scenarios.
The Minimum Payment
Your monthly minimum payment is the lowest amount you can pay on your credit card bill each month without being penalized. It’s usually a very small percentage of your total balance, plus any interest and fees that have accrued. Your minimum payment may change if your interest rate or balance changes.
What is the minimum payment?
The minimum payment is the least amount of money that you can pay on your credit card bill each month. Your credit card company will typically set this amount at 3% of your outstanding balance, or $25, whichever is greater. This means that if you have a balance of $100, your minimum payment would be $3. If you have a balance of $1,000, your minimum payment would be $25.
Minimum payments are designed to keep you in debt for a long time and costs you a lot of interest. It’s generally in your best interest to pay more than the minimum payment each month.
How is the minimum payment calculated?
Your minimum payment is calculated based on your outstanding balance, interest rate, and required minimum payment percentage.
The required minimum payment is typically a percentage of your outstanding balance, usually between 1 and 3%. So, if you owe $1,000 on your credit card with a minimum payment of 2%, your required minimum payment would be $20.
Your minimum payment may also include any fees you may have incurred during the billing period, such as late fees or annual fees. And, if you have had a balance transfer or cash advance during the billing period, you will also need to pay back at least a portion of that amount.
The Statement Balance
Your statement balance is the total amount of money you still owe to your credit card company as of your most recent statement. It includes any new charges made since your last statement, as well as any unpaid interest or fees. Your statement balance is different from your current balance, which is the total amount you owe including interest and fees charged up to that point.
What is the statement balance?
The statement balance is the amount of money that you still owe to your credit card company. This is the balance that appears on your monthly statement.
How is the statement balance calculated?
Your statement balance is the total amount you owe to your credit card company at the end of your billing cycle. This balance includes any new charges, interest, fees, and other amounts that may have accrued since your last statement. To calculate your statement balance, simply add up all of these charges and subtract any payments or credits that you have made since your last statement.