Understand Credit Statement

Have you ever receive your credit card
bill with additional charges? These
charges are not from your previous
month's purchase or usage. Yes, we did.
Sometimes we forget to pay the credit
card bill because too busy, too many things
happen or simply we overlook on the
payment due date.

Recently I renewed my subscription to
Reader Digest using credit card. The
amount is RM143.06. I used to pay in time
but I totally overlook onthis matter
because I went for vacation in February.
A month later, I received the bill with
RM150.17 in total where RM5 for LATE
PAYMENT CHARGES and RM2.11 for
FINANCE CHARGE.

According to PUBLIC BANK, there are
two types of charges basically, LATE
PAYMENT CHARGES and FINANCE
CHARGE. if the minimum payment
amount is not made by the payment
due date as indicated in the statement,
a LATE PAYMENT CHARGE will be
assessed at the rate of 1% of the minimum
payment amount subject to a minimum
of RM5 (riggit Malaysia)

FINANCE CHARGE is imposed on the
outstanding cash advance transaction
balance from the transaction date until
full repayment. The charges is 18% per
annum.

The Minimum Payment Amount due
from you in respect of theCurrent Balance
(being 5% of the Current Balance or RM50
whichever is higher or if the Current Balance
exceeds the credit line, 5% of the credit line
plus overlimit amount).

By doing some calculation, we should be
able to figure out the interest we have to
pay due to the unintentional mistake we
make. By understanding the charges and
fees imposed by the credit card company,
we ought to be more alert in making
FULL repayment IN TIME under
normal situation.