Common use of Average Daily Balance Clause in Contracts

Average Daily Balance. To obtain the daily balance for each Balance Category we subtract any payments made within the grace period effective the first day of the billing cycle, then we take the beginning balance each day and add new transactions applicable to each category, and subtract any payments, credits, and refunds applied to the category. To figure your Average Daily Balance for each Balance Category, we add all your daily balances and divide by the number of days in the billing period.