When card balances carry over from one statement cycle to the next, the issuer may assess finance charges computed from the outstanding amount. These costs accrue based on the card’s terms and can compound if balances persist. Learning how statements calculate charges—daily balance methods, grace periods, and applicable rates—helps consumers plan payments strategically. Clearing purchases within a grace period can avoid financing costs altogether. Reading disclosures and tracking due dates builds habits that minimize charges and keep budgets on course.