 Hello everyone, this is financial author Amit Don of Edon Journal. We all know it's in our best interest to pay off credit card balances each month, so credit card companies do not charge the high interest on our balances. However, it may not be possible for some of us to pay credit card balances in full each month. Today, I'll show you a simple trick that will save you money if you carry balances on credit cards. Credit card companies mainly use two methods to calculate interest. These are average daily balance method and daily balance method. As it sounds, average daily balance is the average of your daily balance for the full billing period. This average is multiplied by the daily interest rate and then multiplied again by the number of days in that billing cycle. The daily balance method is much simpler than the average daily balance method, although both methods generate the same interest charge. The daily balance method looks at your interest charge daily for the billing period and adds each day's interest to get your interest for the month. So if you look at these methods carefully, you'll realize that by paying several times instead of paying once per month, when you carry balances, you save money on interest charges as paying several times will bring down your daily balances and averages several times for the billing period. Any partial payment will have the effect of lowering the interest you pay. For example, if you are paying $200 towards your balances once a month, paying $50 in four weeks or several times throughout the month will generate less interest charge. On small balances, this trick may not trigger significant savings, but the savings will be noticeable on higher balances. Keep in mind that if you are paying balances in full, you do not need this trick as you are not paying any interest anyways. If you would like to find out more, visit addonjournal.com. That's all for today. Thank you.