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Credit Card Interest: How Does It Work And How Is It Calculated

From CreditKarma.com….

In an ideal world, you’d never miss a monthly payment or carry a balance on your credit cards. But many Americans do carry a credit card balance from month to month. According to the Federal Reserve Bank of New York’s Household Debt and Credit Report from the second quarter of 2020, credit card balances stand at approximately $820 billion.

So, what’s the problem with carrying a balance and having credit card debt? In many cases, it boils down to three letters: APR.

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