00:00Do you often wait till the end of your billing cycle to pay a credit card bill?
00:16Don't wait.
00:17Here's an example why.
00:18Let's say you owe about 1000 dirhams in credit card debt and you wait until the end
00:24of the period to pay your bill.
00:26Now, you would actually benefit by paying let's say around 500 dirhams at the start
00:31of the cycle and pay lesser interest over time.
00:35Here's why.
00:36This is because your average daily balance, which is your total outstanding divided by
00:4031 days, reduces.
00:42But however, if you are a person who pays off your entire debt before the due date,
00:46this doesn't apply to you.
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