The term “two cycle billing” may not be common knowledge to all credit card users, but it is a concept that everyone should be aware of. Some issuers have been moving away from the average daily billing cycle and changing over to the two cycle way of calculating the interest earned on balances. Two cycle billing does not greatly affect users that tend the carry a balance, but it does however affect cardholders that pay there balance off monthly.

In order to understand two cycle billing you must first understand the average daily billing method, which will now be explained. Let’s say that you own a credit card with a 15% interest rate and your billing cycle for the month of April runs from the 1st through the 30th of the month. At the beginning of the month you have a balance of on the card. Now, on the 10th of April you make a purchase of 00, which means you are going to carry that balance for 20 days until the current billing cycle ends. You must now calculate the average daily balance for the month of April. To do so you must first multiply the balance of the card by the number of days the balance was carried (00 × 20 days = 20,000), then you will divide that number by the total days in the billing cycle (20,000 ÷ 30 = 666.67). You have now figured out that your average daily balance for April would be 6.67. If this card uses the average daily billing cycle and you started the month with a balance, there will be no interest charged as long as the April balance is paid off in full. This billing cycle essentially gives you a grace period on purchases as long as the balance is paid off in full each month. But, if this credit card uses the two cycle billing method, you would be charged interest for the month of April when you receive your bill in May because your average daily balance is based on the last 2 billing cycles. So, when you receive your bill for May, you will have a finance charge that is due, even though your balance was paid off in full for April and you didn’t make any purchases with the card in May. In order to figure out how much your interest would be, you will take the average daily balance × number of days in the billing cycle × periodic interest rate. Below are the calculations to figure out your interest due in May.

Average daily balance 1000 × 20 ÷ 61 = 327.87

Number of days in billing cycle 30 + 31 = 61

Periodic interest rate 15 ÷ 365 = .0411

Finance charge for May 327.87 × 61 × .000411 = 8.22

Based on the interest rate of 15% stated above, you will receive a bill in May that shows a finance charge of .22 even though the balance was paid in full in April. As you can now see, the two cycle billing method of calculating interest is not ideal for users that choose to pay there balance of in full each month. Essentially, a two cycle billing card will start charging interest from the day the purchases is made, which will eliminate the grace period that is provided by a card that uses the average daily billing method.

As you can now see, the two cycle billing method of calculating interest would mainly effect users that always pay their balance off in full because they will still be paying interest on purchases even when there is no balance being carried over on the card. So, next time you are looking for a new credit card make sure you look at the fine print to check for what type of billing method they use for that card.

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Open ended-question.
Yes, I think we are all in agreement that sweat is good. We are not trying to prevent sweat, but are explaining the manner in which we control it.

i usually drink water, but is something like ribena good? orange juice?

Thanks

Terapad Launch Free Cycling Templates

Terapad have launched a range of free website templates designed especially for those with a ‘love of two wheels!’

Terapad supports cycling for a number of reasons. Firstly it is great fun, but it also saves some of us time and all of us money. It is fantastic for our health and great for the environment. It is a sport popular throughout the world and has given us many inspirational sporting heroes. If you still need convincing then check out the UK’s leading alternative transport charity’s in-depth explanation about why more people should cycle.

This is just one example of the five fantastic templates now available.

We recognised that a Terapad website would be a great resource for cyclists worldwide and so we decided to design and offer free websites to cyclists everywhere.

Terapad comes with an amazing array of features perfect for those interested in cycling.

In fact you could use a free cycling website to:

1.) Organise a cycling team or club – Use the forum, blog and events calendar to arrange meets, jams and races.

2.) Sell bike related equipment and merchandise – Terapad comes with a free shop that you can use to sell anything, commission free.

3.) Accept donations – Receive donations to support your team or a good cause you are raising money for.

4.) Engage an active online community – Join hundreds of cyclists setting up Terapad sites and monitor cycling posts in the community section.

5.) Discuss cycling news and events – write news bulletins that will be sent out across the internet and link to other cycling websites.

All of the websites are powered by Terapad’s unique content management system which means each website is fully customizable. Personalizing your site is easy; you can upload images of your bike and cycling team, plus you can use the web pages to attract new members and offer handy training hints or bike repair tips.

There will initially be five free templates for you to choose from; Cycling Team, Cycling Club, Mountain Biking, Cycle Shop/Repairs and an extreme cycling website called Abstract Biking.

The websites are available from today and are completely free so sign up now at,

http://www.terapad.com/

Simply chose a template and away you go.

These websites are accessible everywhere and are available to anyone. If you are associated with a cycling organisation, an alternative transport charity, a cycling magazine, website or club and would like to learn more about these free websites please get in contact or simply start spreading the word. Soon everyone will love cycling as much as we do!

A website like this is now available to anyone.

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