William Li presents a new way to think about treating cancer and other diseases: anti-angiogenesis, preventing the growth of blood vessels that feed a tumor. The crucial first (and best) step: Eating cancer-fighting foods that cut off the supply lines and beat cancer at its own game.
Knowing the complex rules used for calculation of credit cards is necessary to get an idea of the damage a late payment can do to your financial well-being. In this article, let us understand how banks calculate interest on credit cards.
How banks calculate interest
Every bank has to disclose the method of charging interest in its Most Important Terms and Conditions (MITC) document. The MITC document forms part of the welcome kit that you get on the issue of a new credit card and must also be available on the bank’s website. The calculation of interest depends on the type of transaction. And speaking of transactions, there are broadly two types as follows:
- Cash advances, i.e. cash withdrawals from the ATM using your credit card
- Regular payments such as paying bills, online purchases, using card at merchant outlets, etc.
Related: How to come out of credit card debt
As far as cash advances are concerned, there is a clear and unambiguous rule that interest will be charged as per the stated interest rate from the date of withdrawal to the payment of the outstanding amount.
However, as regards regular payments, it is slightly more complex. As per the rule, if you do not make the total payment due as on the payment due date, the free credit period shall be ignored and interest shall be charged right from the date of purchase for all payments made during that bill cycle as well as those made after the bill cycle till the full outstanding payment on the card is cleared. And since the interest rate on credit cards is anywhere between 15 – 40%, this precisely is the reason why a small default or late payment can balloon in to a large debt in a small span of time.
Understanding Credit Card Interest Calculation through an Example
Following example can help understand the calculation of interest in case of a credit card:
|Purchase on September 10, 2015||10,000|
|Total Amount Due on Statement dated September 15, 2015||10,000|
|Minimum Amount Due on Statement dated September 15, 2015||500|
|Payment made on Due Date i.e. October 3, 2015||0|
|Purchase on October 7, 2015||1,000|
|Payment on October 10, 2015||5,000|
|Interest calculation @ 40.80% p.a. on Statement dated October 15, 2015 will be as follows:|
|1) Interest on 10,000 for 30 days (from September 10 to October 9)||335.34|
|2) Interest on 5,000 for 6 days (from October 10 to October 15)||33.53|
|3) Interest on 1,000 for 9 days (from October 7 to October 15)||10.06|
|Total interest in the Statement dated October 15, 2015 (A) = (a) (b) (c)||378.93|
|Late Payment Charge (B)||500|
|Service Tax @15% (C) = 0.15 * (A B)||131.83|
|Principal Outstanding (D)||6,000|
|Total due as per Statement dated October 15, 2015 (A) (B) (C) (D)||7,010.76|
While a credit card is a great boon in the form of free credit period and reward points, one should not forget the implications of using it irresponsibly. Rules on interest calculation in case of credit cards are extremely complex and highly skewed against the consumer. A user must formalise himself of the rules to prevent a debt trap like situation.
If you have been given a corporate credit card, it’s essential you exercise even more caution. To ensure you don’t break any rules, here are some Corporate Credit Cards- Dos and Don’ts.
Disclaimer: This is general advice. Please refer to your bank’s MITC document for detailed guidance.
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Very useful resources by MCGM for unforeseen circumstances
This Residential Community Saved a Lake, Recharged Groundwater and Is Planting 1000 Trees Every Year
Here is how a residential community in Bangalore, Akshaya Nagara, has created an enviable living environment for its residents.
Akshaya Nagara is a rather unassuming residential layout in Bangalore. It did not even fall under the Bengaluru metropolitan civic body, BBMP, until recently. This means it did not receive any of the public facilities like water supply, sewage drain pipes or garbage collection service that other residential areas receive. Even today, Akshaya Nagara is not a beneficiary of the centralised Cauvery water supply and is solely dependent on bore wells.
However, the residents of Akshaya Nagara decided not to lament about these issues or wait for the authorities to solve their problems. They took it upon themselves to find sustainable solutions and create an enviable living environment for themselves.
It was over a decade ago that the ground work for the development of Akshaya Nagara began. The layout had a rare blessing – a lake. But it could not really be called a blessing then. Although the lake has historical relevance from the times of Begur royalty and is located at the heart of the layout, it was filthy because all the sewage water from the layout used to flow into it. It was also a spot for open defecation. In fact, the stench, filth and overgrown weeds made the lake and its surroundings so unbearable that it was on the verge of being abandoned. But the scenario was totally reversed by the dedicated work of the residents of Akshaya Nagara.
In 2004, a retired bank official named Ramesh Kumar began mobilising interest among the residents about the need to save the lake and the surrounding environment.
The first aim was to stop all sewage from getting dumped into the lake. Since Akshaya Nagara was not part of BBMP, it was not eligible for any funds from the civic body. The residents decided to build the sewage drains by themselves. Every house contributed towards the fund and the job was begun. The local MLA could not help but notice the dedication of these residents and decided to help them with the funds.
The newly laid pipes helped ensure there was no more sewage flow from Akshaya Nagara layout into the lake.
After this big achievement, the residents went on to the next pressing issue – water supply. The layout’s water supply depends entirely on bore wells. Ramesh Kumar and his team were convinced that the underground water reserves need to be replenished constantly. They started building storm water drains to channelise the water into the lake. They also dug up over 60 rain water pits near the layout, specially layered using charcoal and sand, so that the rain water percolated into the ground.
Most of the buildings in the layout practise rain water harvesting. “We save every drop of water in Akshaya Nagara and ensure that our bore wells are recharged. Even during this peak summer, none of our bore wells failed us,” says Ramesh Kumar.
Over the last decade, the population of Akshaya Nagara increased and maintaining the lake became difficult. The lake again attracted weeds, debris, garbage and, of course, open defecation.
Last year, a few youngsters saw a lone old man clearing a dirty patch of land near the Akshaya Nagara lake. It was Ramesh Kumar. Curious as to what he was doing and why, they started to talk to him. He told them, “I want to save this lake.” The youngsters were so inspired by his dedication that they decided to start efforts anew to revive the water body.
They formed a team of volunteers and named it ‘Akshaya Nagara Kere Sutta Mutta’, meaning, ‘Akshaya Nagara Lake and its surroundings’.
Volunteers from the layout got together every week. They cleaned the lake, de-weeded it and fenced it.
They levelled the land around the lake to make a beautiful walking path. They said no to concrete blocks for the path and decided to keep the natural mud trail. They planted saplings all along the lakeside and installed benches for people to sit on. As a result of their hard work, the area has been completely transformed.
Today, over 400 people walk and jog around Akshaya Nagara lake every day! A yoga class is held on the lakeside.
Over the last 12 years, the residents have been planting trees in Akshaya Nagara. The tree-to-person ratio in Akshaya Nagara is 1:1 – one tree for every resident, while the Karnataka state tree-to-person ratio is 1:6.
The volunteers planted 1000 trees in the last one year. They have committed to planting another 1000 trees every year in the area around Akshaya Nagara.
Every week, the residents of this layout devote their time and efforts to maintaining the Akshaya Nagara lake. But they are not stopping at this – they have started working to save the next lake in the vicinity, Yelenahalli lake!
Catch up with the activities of Akshaya Nagara Kere Sutta Mutta on their Facebook Page
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Here is the link to a Handy Do It Yourself (DIY) guide to RTI. You have various formats, including RTI in local languages, Standard RTI and appeal forms, rules, GRs, Guidelines, Articles by Shailesh Gandhi and other resources.
Must read for RTI activists and great help for the common man who wants RTI to improve Society and his own administration
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Who can lodge an F.I.R ?
1) Complainant who is an aggrieved person or some body on his behalf.
2) By any person who is aware of the offence (a) as an eye witness and (b) as an hearsay account.
3) Provided the person in possession of the hearsay is required to subscribe his signautre to it and mention the source of his information so that it does not amount to irresponsible rumour. The rule of law is, if general law is broken any person has a right to complain whether he has suffered an injury or not.
(a) By the accused himself.
(b) By the SHO on his own knowledge or information even when a cognizable offence is committed in view of a officer incharge he can register a case himself and is not bound to take down in writing any information. Under the order of Magistrate uls 156 (3) Criminal Procedure code, when a complaint is forwarded to officer incharge without taking cognizance. If information is only hear say, then SHO should register case only if person in posses- sion of hearsay subscribes his signature to it and mentions the source of his information so that it does not amount to irresponsible rumour. The information must be definite, not vague, authentic, not baseless, gossip or rumour, clearly making out a cognizable case.
4) The information is only by a medical certificate or doctor’s ruqqa about arrival of the injured, then he (SHO) should enter it in daily diary and go to hospital for recording detailed statement of injured.
For more FAQs on F I R – Click Here