Past-Due Balance Method

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Definition: Past-Due Balance Method

Past-Due Balance Method
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Full Definition of Past-Due Balance Method

A technique for calculating finance charges (such as in a bank account, charge account, or credit card account) in which no interest is charged if the balance is paid off within a certain time period. In this method the charges to be paid are only for the amount outstanding after the grace period. For example, if a credit card holder pays $75 of the $100 the card was used for within the 15 day grace period, charges are incurred only on the remaining $25.

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https://payrollheaven.com/define/past-due-balance-method/
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Past-Due Balance Method. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 18, 2024 https://payrollheaven.com/define/past-due-balance-method/.
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Past-Due Balance Method. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/past-due-balance-method/ (accessed: April 18, 2024).
American Psychological Association (APA):
Past-Due Balance Method. PayrollHeaven.com. Retrieved April 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/past-due-balance-method/

Definition Sources

Definitions for Past-Due Balance Method are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.