As debt maven Gerri Detweiler explains, one of the best methods for consumers is the average daily balance, excluding new purchases. Each month's daily balances are added together, excluding new purchases, and divided by the number of days in the billing cycle. Some card companies include new purchases in the calculation. Consumers should avoid the two-cycle average daily balance method that calculates the average daily balance for two billing cycles, the current one and the previous one, including new purchases. For example, penalty fees are going UP sharply.
Cash advances can be costly, too.
A Credit Card Worksheet The Bank Rate Monitor created the following worksheet to help anyone compare their current credit card terms with any solicitations. Almost all of us hit a turbulent period when we run up credit-card debt. Typically, it's when we face a pressing financial circumstance such as the loss of a job or a major illness in the family. Sometimes, people just get carried away at the mall. Or take a vacation that added up to big bucks.