I received my credit card statement on 23/10/2013. The interest charged was R111.83. I phoned them on the same day to find out how the interest was calculated. They said they calculated it on the old balance at the interest rate of 19.4%. I tried to do calculations with the lady but I didn't get R111.83. My opening balance on 23/09/2013 was R4395.02. Total purchases for the month were R3124.33. On 01/10/2013 I paid R3000.00. If I were to apply their principle the calculations will be as follows: R4395.02 X 19.4% X 8/ 365 = R18.67. I used 8 days because I owed them R4395 from 23/09/2013 until 01/10/2013 when I paid R3000.00. From 01/10/2013 the old balance was R4395.02 - R3000 = R1395.02 and the interest will be calculated as follows: R1395.02 X 19.4% X 22/365 = R16.31. My total interest for the month should have been R 18.67 R 16.31 = R 34.98. I also calculated interest on the new purchases in case they decide to charge me interest on them as well. My calculation is R39.43. R39.43 R34.98 = R74.41. It does not even add up to R111.83. R 111.83 is interest on R7013.39 @ 19.4% . I did not owe them R7013.39 at any point. I need them to show how they lnflated interest to R111.83.
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