The Consumer Unity & Trust society (CUTS) has failed in convincing the Reserve Bank of India to pull down credit card interest rates.
(http://economictimes.indiatimes.com/ET_Debates/Cap_credit_card_interest_rates/articleshow/3473126.cms)

You would think that the CUTS would get some sense knocked into its stubborn head after repeated failures. After all, it has been at this for over five years. And even it they are fighting the good fight on our (the credit card consumers) behalf, the complaints are not going to go away. Neither are the problems. Whether interest rates go down or not, we ARE paying those interest amounts, month after month.

And let’s face it, no amount of sound logic is going to convince any of us who are inveterate spenders to slow down and maybe, you know,..spend less.

So, this will be just an exercise in questionable logic.

Do you wonder why when you just have Rs. 10000 to spend in a month, you end up spending twice that? How is that even possible?

Today is your lucky day.

Your income defines your shopping budget. Let say your monthly income is Rs. 25000; after expenses, let’s say you have Rs. 10000 free and clear. This is spending money, folks! Here comes the catch - Your shopping budget is actually twice that Rs. 10000! How? You know you can back Rs. 10000 worth of shopping on your credit card with this spending money. But when you are swiping that card, you know that you have a fifty day grace period before you gotta pay it back with interest. Guess what, your next pay will come in by then and with it comes another Rs. 10000 of spending money. So you are simply spending that money right now. Neat, eh?

Now, how do you do this smartly, so that you don’t default or end up paying exorbitant interest on all this?

Let’s say your credit card statement comes on the 5th of every month, and the due date of payment is the 25th of that month. Now, if you buy something on the 6th of the month, that purchase is listed only in next month’s statement. Which means, provided you pay up by every due date, you can blow the spending money of this month as well as the next month AND pay zero interest on the amount swiped on the card.

You are welcome.

My father who had an ICICI credit card which expired in April 2008. The outstanding on his card was Rs. 42,000. We have informed the bank about the same, but they said we have to pay up. I have not inherited any property from him. However, my mother is the joint owner of our house with him. Legally, are we (me and my mother) liable to repay the whole outstanding amount to the bank? We have been getting statements with added interest etc. Please help.

I was using a HDFC credit card issued in Hyderabad. I have been constantly travelling and shifting places as a part of my job requirement. In the meanwhile, I have ended up defaulting, not having made a payment due, even after four months passed by. A couple of months later, the collection agents called me for regarding the payments due. I made the payment promptly. My card is still blocked and I believe they have marked me as a defaulter in the credit bureau. As a result, I am not getting any other credit card. I requested them to unblock the card which didn’t happen (don’t know the reason). I am not receiving any statements from them and I am being told to make the payment due (which is not a fact).

I am charged a hell lot of amount as late fees and all, whereas they don’t care to send me a statement. I have logged a complaint in their website recently and am waiting for a reply. I don’t think this is a fault all from my end. Please advice me how to deal with this and what to do about the Credit Bureau?

I am really bugged by the credit card services of ICICI. I fail to understand the statements been sent by them. I have paid an amount of Rs. 3,600 on March 27 through internet banking. This amount was way more than the amount which has to be deposited. Now I received a statement which says that I have a due payment of Rs. 2, 955.47. All their statements are sent in language of accounts. I need a simple statement which tells me how much amount is due on my credit card. I was told by their people that the excess amount will be adjusted. They have already charged me a late payment fee of Rs. 300 on 25th April. They have sent me the statement on 8th May which has to be sent on April 28, 2007. I have decided to file a case against these people.

My sister has a Citibank MTV card. There have been recurring problems with the billing. Sometimes, I get the bill and sometimes the statement doesn’t arrive at all. The result is that we have to call the bank every month after which they reissue the statement. This also means that we end up getting charged for and seeking reversal of extra charges such as the interest and the late payment fee.

What happened was that we called the bank in November 2007 and got them to remove all the extra charges. So out of Rs. 52, 000, she made a payment of Rs. 40, 000 in December once she got the bill. I am fed up as the issue still continues. I don’t want to have to call them all the time, every month. My sister doesn’t want to do away with the card. What do I do?