Average Daily Balance Method

Usual response to credit card statements: TL;DR...that's relevant here because the average daily balance method is an accounting method that helps credit card companies squeeze the most that they can out of their balance-carrying credit card customers. It’s a method for calculating how much interest you owe on the balance due. Each day there’s a balance, interest is added using the total amount due.

Other accounting methods only calculate and add interest weekly, monthly, or yearly, which is cheaper for the borrower. Don’t forget that credit card debt compounds, meaning it grows faster than Violet Beauregarde.