adjusted balance method
Definition
A technique for calculating finance charges (such as in a bank account, charge account, or credit card account) based on the account balance remaining after adjustments are made for payments and credits during the billing period. Interest charges are usually lower under this method than under other methods, such as average daily balance and previous balance methods.
Use this term in a sentence
“ You may want to try and figure out if the adjusted balance method will make things go more smoothly for you. ”
“ The adjusted balance method was a really interesting thing to me and I thought that we would try it out for us. ”
