With the holiday season comes plenty of spending for many consumers. Out of the estimated $1000 that each person spends, 75% is is done on a credit card. Credit card statements will soon be making their grand appearance in mailboxes nationwide, and now is the time to learn exactly what all of those terms on their credit card statement mean.

When any person opens up their credit card statement, the first thing they look at is the portion which states the amount due. The amount due may seem pretty cut and dry to some, but many people may not realize that this number is not just the purchases that were made, but includes a combination of other fees as well. There may be some other fees that are also part of the amount due, and understanding the terminology presented on a credit card bill may take away the initial confusion about what is owed.

• APR (Annual Percentage Rate): The APR on a credit card statement is a reflection of the interest that has accrued and is reflected in the amount due portion of the statement.
• Cash Advance: The amount that you can have forwarded to you in actual cash. A cash advance can be taken from almost any financial institution and even ATMs. The interest rate on cash advances is going to be higher than the normal APR.
• Grace Period: The grace period on a credit card is a period of time in which purchases can be made without interest accruing. Grace periods are generally found with a new card.
• Due Date: The Due date is the actual date that the bill is due.
• Minimum Payment Due: The smallest payment possible that won’t incur further fees. With most credit cards, if only the minimum payment is made month after month the total debt on the card will essentially never be paid off.
• Late Payments: A late payment is accrued when the credit card company recieves the payment after the due date. It is generally around $27 to $30.

Understanding credit card terminology can not only help a person be in control of their debt, but also help them understand how charges may accrue on their statement that they aren’t aware of, and identify any inaccuracies. If there are ever any discrepencies on a credit card statement, it is crucial that the credit card company is contacted as soon as they are discovered.

Other articles of interest:

• Playing It by the Book and Finding Your Credit Score Is Weak
• Jaded Americans Search for the Lesser Evil in the Financial World
• Do Credit Cards Hurt or Help?

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