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Residual Interest
The interest that accumulates on a loan or credit card balance when it is not paid off in full from one billing period to the next.
More Details
Residual interest is the interest on an unpaid portion of a loan or credit balance that remains after making a partial payment. It is based on the amount that is still outstanding after the partial payment is applied. Usually it is a higher interest rate than the standard interest rate on a credit card.
Example
If you do not pay off the full balance by the due date, the credit card issuer will charge you residual interest on the unpaid balance. The amount of residual interest you are charged will depend on the number of days between the billing statement date and the date you pay the bill, as well as the interest rate on the card.
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