Revolving balance

Revolving balance — the part of a credit-card statement you didn’t pay by the due date, which “revolves” into the next cycle and accrues interest at up to the BSP ceiling (3%/month, 36% p.a., per Circular 1165). It compounds: unpaid interest joins the principal, so next month charges interest on interest. Paired with minimum payments structured to clear interest first, a revolving balance at the cap can take years to extinguish and cost more in interest than the original purchase. The course’s rule: a card paid in full monthly is a free reporting instrument; a card revolving is among the most expensive money in the PH system.

First used in: 3.2 · The PH credit machine