Hi, could anybody guide me on how banks calculate their interest on credit card outstanding payment? A close friend of mine is owing UOB around RM12k and he's being charged around RM190 for the interest alone monthly and it keep increasing. So can anybody guide me on how exactly bank calculate their interest. Thank you in advance.

This post has been edited by ammeltz.yokoyoko: Aug 31 2010, 03:48 PM

Hi. Thanks for the reply. I've tried to calculate it but I can't get the same amount as the bank. Could anybody guide me how banks calculate their interest charges? Attached is a shot of my friend statement. Note that the first amount is RM12233.39 which is the previous month balance. Below it is the late payment charge and then its the interest charge. Total up is RM12458.76. I would like to know how the RM186.67 is calculated. Sorry for the grainy picture because my friend faxed his statement to me. Thank you.



This post has been edited by ammeltz.yokoyoko: Sep 1 2010, 04:11 PM