Past due balance method
A method for calculating financial charges that charges no interest on a balance as long as that balance is paid off within a pre-determined time period; the balance remaining after the interest-free period is over is then considered "past due," and is penalized by the application of an interest rate. The past due balance method is applied to both credit card and charge accounts.
Nearby TermsPass-through rate Pass-through securities Past due balance method Patent Path-dependent option
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University