A billing cycle is the period of time between the issuance of a bill and the due date for payment. Typically lasting about a month, this cycle helps businesses and consumers track their expenses and manage payments. For example, a credit card company may generate a statement at the end of each billing cycle, summarizing all transactions made during that time. During the billing cycle, customers can review their charges, make payments, and avoid late fees. Understanding the billing cycle is essential for managing finances effectively, as it allows individuals to plan their budgets and ensure timely payments to avoid interest charges or penalties.