Question

Which of the following billing terms is defined as "Total amount due on this date to avoid late fees"?

A) Outstanding Balance
B) Current Charges
C) Minimum Payment
D) Due Amount

Answer 1

The term for the total amount due on this date to avoid late fees is 'Due Amount'. It's important to pay at least the minimum payment on time to avoid late fees and interest on any carried credit balance. Option D is correct.

Step-by-step explanation:

The billing term defined as "Total amount due on this date to avoid late fees" is Due Amount. The Due Amount represents the sum of money that must be paid by the specified date to prevent the imposition of additional late fees on your account.

As per the credit card company's policy, a late payment fee of $10 is applied, followed by a $5 daily charge until the payment is made. Hence, it is crucial to pay at least the minimum payment by the due date, although paying off your credit balance as promptly as possible will help you avoid the accruing interest on the carried balance.