Hi, I have a question regarding this new rule.

Say, for example, my credit limit is 20k, and I have spent 18k.
Then, the bank cut my CL to 5k.
I understand that I will be give a grace period of 2 years to pay the debts. And I have to pay at least 5% every month.

My question is, how is the bank going to calculate the interest & finance charge for the outstanding balance? Does it work like the normal way, 18K * 17.5%.
until u make a full payment?