carrying charge
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Related to carrying charge: Carrying Charge Market
carrying charge
1. A cost incurred for the physical storage or ownership of an asset that is unproductive or not lucrative. The strike by pilots and flight attendants devastated the airline's profits, as they had to refund passengers' ticket prices as well as pay a higher carrying charge for their grounded airplanes. The carrying charge for the new apartment complex, which failed to attract potential homeowners, eventually bankrupted the development company. If you don't fix this place up quick and get it on the market, you'll start drowning in carrying charges.
2. An additional charge, usually interest, applied to an account that is paid in installments. The phone company advertised having the lowest rate, but after the carrying charge was applied, my monthly bill was actually higher than ever before! Yikes, the carrying charge for that credit card is just brutal. Yeah, you can pay in installments, but when you factor in the carrying charge, you'll end up paying way more that the one-time fee.
Farlex Dictionary of Idioms. © 2024 Farlex, Inc, all rights reserved.
carrying charge
1. Interest charged on the balance owed when paying on an installment plan, as in What is the carrying charge for this credit card? The term denotes the amount charged for carrying the remaining debt. [Late 1800s]
2. The cost incurred when an asset is unproductive, as when aircraft are grounded during a strike, real estate cannot be developed owing to zoning laws, or similar circumstances. For example, The carrying charge for owning this building may send us into bankruptcy.
The American Heritage® Dictionary of Idioms by Christine Ammer. Copyright © 2003, 1997 by The Christine Ammer 1992 Trust. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.