Bank finance articles and tips

Understand How Interest Works

Every month, the interest rate is applied to your outstanding balance and an interest charge is applied to the balance. When you make a payment, your balance doesn't reduce by the amount of your payment. Instead, it only goes down a fraction of your payment because part of the payment goes toward interest while the remainder is put toward your balance. There are many resources out there that can help consumers manage their credit better by showing them the payment process over time, otherwise known as an amortization table....