How Credit Cards Charge Interest! (The Basics)

How does credit card interest work? It can be confusing to understand, but I'll explain the basic math so you can get an idea of how much you'll be paying in interest. This video will explain the average daily balance method in the simplest form ( so it's not 100% accurate), but it'll at least give you a general idea of how the math works. Credit cards can be extremally expensive, so always try and pay off the statement balance in full by the due date each month and you'll never need to worry about paying any interest.