Now that you know about billing cycles and billing dates, payment due date, minimum amount due, total amount due and previous balance, let's understand how you must make your payments to ensure to to get into credit card debt. Credit cards have their pros and cons, which explains the good and bad that get reported about them.

One of the major things in a credit scard statement is Minimum Amount Due (MAD), which is 5% of the Total Amount Due. This is the only detail you will find relatively well highlighted in your monthly account statement. This states that you must pay for the purchases done in that month so as to not attract a penalty for default on payment of card dues. But there are charges levied then also if you pay you Minimum Amount Due before the due date. Lets have a look on the IV possible scenarios

(I) If you pay don’t pay anything till the due date, then you are liable to pay the following charges:

I just want to say a BIG thank you for the awesome service I have received from you. Prompt Response, Great knowledge, all the information I needed about payments, Best rate of interest and Easy to deal with.

(III) If you pay more than or equal to Minimum Amount due but less than the total amount due then you will be categorized as a Revolver. And then you will be levied the following charges:
1. APR from the date of the transaction and on the full amount of the transaction1
2. Processing Fee on the full amount of the transaction
3. Service Tax
Till the time you don’t pay the total amount due on your card with all the charges levied you cannot get out of your credit card debt.

(IV) If you pay The Total Amount due and that too before the due date then you can always take the maximum benefit of your credit card!
It is recommend that you should pay the entire sum, i.e. Total Amount Due before the due date on your card. Buying on a credit card is okay till the time you pay your bills religiously. The moment you carry forward your payment to the next monthly cycle, you will have to pay interest on the unpaid amount along with taxes. Once you understand these scenarios, you will be able to spend and use your credit card judiciously.