You really shouldn’t have any credit card interest. With just basic financial planning, you can ensure credit cards are only a mode of payment; not an actual source of loans. But we understand the psychological realities involved: at some point, you may go overboard. Here are some things you can do to reduce the damage:

First, understand how the credit card interest works

Credit cards have an interest rate of about two per cent per month or 24 per cent per annum. This interest is applied on any outstanding debt, at the end of the billing cycle. Note: not at the end of the month”, but on the last day of the billing cycle (that could even be the 20^th of the month, depending on when you start using the card).

Missing the minimum repayment (typically $50 or five percent of the amount owed, whichever is higher) can cause ...