Listen to a Business English Dialogue About Adjusted balance method
Lily: Hi, Scarlett! Have you heard of the adjusted balance method?
Scarlett: Hi, Lily! Yes, it’s a way to calculate credit card interest based on the balance after subtracting payments and adding new charges.
Lily: That’s right. It’s different from the average daily balance method because it considers the balance at the end of the billing cycle.
Scarlett: Exactly. With the adjusted balance method, if you pay off your balance in full each month, you can avoid accruing interest charges.
Lily: Yes, because the interest is calculated based on the remaining balance after payments are made.
Scarlett: Right. It’s a good method for those who want to minimize interest charges on their credit card balances.
Lily: Definitely. Understanding different interest calculation methods can help people manage their credit card debt more effectively.
Scarlett: Absolutely. It’s important to choose the method that works best for your financial situation.
Lily: Yes, and staying informed about these methods can help people make smarter financial decisions.
Scarlett: That’s true. It’s all about being proactive and managing your finances wisely.
Lily: Thanks for the chat, Scarlett. It’s always good to learn more about financial topics.
Scarlett: You’re welcome, Lily. I’m glad we could discuss it. Financial literacy is essential for everyone.