Post Ac1WUU2ZKReIqOWsm8 by jayesh@mastodon.social
(DIR) More posts by jayesh@mastodon.social
(DIR) Post #AbvyVezfionOsAlRdw by shrikant@noc.social
2023-11-18T14:47:01Z
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Just had a very frustrating call with my credit card provider about a line item in my bill called "Financial Charges".From what I understand, if you don't pay off the WHOLE BILL by the due date, you are charged interest on the WHOLE AMOUNT in the next cycle - even if you pay off 99.99% of the bill amount! And on any NEW transactions too!Trying to wrap my head around this situation but the math I found seems both opaque and convoluted.Anybody have a #smallweb resource for me to grok from?
(DIR) Post #Abw3vFomRkEs5kh2u0 by mehluv@mastinsaan.in
2023-11-18T15:47:40Z
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@shrikantWhich bank is this?
(DIR) Post #AbwARuJO1jZUfjxjhA by shrikant@noc.social
2023-11-18T17:00:49Z
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@mehluv HDFC.
(DIR) Post #AbwQd4TUBFQOdz21PE by mike805@noc.social
2023-11-18T20:02:06Z
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@shrikant Just went and read the statement and it's very confusing. They charge either a daily percentage based on the balance that day, or a monthly percentage based on the average balance. Yes, if you have one cent not paid by the end of the billing period, they charge you interest at 20% APR on the whole amount outstanding.Banks have also been evil by re-ordering transactions to maximize the number of overdraft fees they can charge.You either pay in full every month or you get robbed.
(DIR) Post #AbyHHCqLsGJuxP9768 by shrikant@noc.social
2023-11-19T17:26:40Z
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@mike805 Try 43.6% APR!!I went searching and this is what I found:If I pay only a partial amount, then the card company charges me 3 "types" of interest:1. Interest on the WHOLE amount from date of transaction to payment date.2. Interest on BALANCE DUE from payment date to next bill generation date.3. Interest on any NEW transactions from date of transaction to bill generation date.Link to explainer with an example: https://www.paisabazaar.com/credit-card/interest-rates/
(DIR) Post #AbyHv79iRLoittEVl2 by shrikant@noc.social
2023-11-19T17:33:56Z
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@mike805 Here's what happened in my case. I'm changing the numbers and dates for easier calculation.I had an outstanding of ₹20,100/- when the bill was generated on 1st of November, with a due date of 15th November. I paid ₹20,000/- on 15th November. I made another transaction of ₹10,000/- on 20th November.The next bill was generated on 1st December.(contd.)
(DIR) Post #AbyIMrdzho1ytscykS by shrikant@noc.social
2023-11-19T17:38:58Z
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@mike805 These are the different "charges" the bank levied:1. 43.6% APR on ₹20,100/- (original amount due) for 15 days.2. 43.6% APR on ₹100/- (outstanding balance) for 15 days3. 43.6% APR on ₹10,000/- (new transaction) for 10 days.Essentially, they converted the credit into a near-predatory loan that would put the worst payday lenders to shame... 😠
(DIR) Post #AbyR6dgCkwOCXq02ee by mike805@noc.social
2023-11-19T19:16:52Z
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@shrikant Wow I guess there are no usury limit laws there. In some USA states they can raise your rate to something excessive under various conditions.No doubt credit card lenders are predatory. They work very hard to get you to carry a balance and get you hooked.
(DIR) Post #Ac1WUU2ZKReIqOWsm8 by jayesh@mastodon.social
2023-11-21T07:01:17Z
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@shrikant It’s been like that since 1997 or so bhai. Assume you are getting robbed and blindly if you are not 100 pre paying. In fact in the distant past when I was merely 35, I ran up so much debt that I ended up taking a personal loan to close out the credit card debt…