JaJa Credit Card Interest

Car46

I'm sure I have been overcharged interest on my Jaja credit card.  At the start of the month I owed £1467. I paid off £315 and spent another £132. I have been charged £44 interest. The interest rate is supposed to be 23% pa. I think I shlould have been charged £28.  In the past when I have complained about the amount of interest I have been charged, JaJa customer sevices just tell me it is correct, but they never tell me how they worked it out. Am I being ripped off?

CliveOfIndia

It's difficult to work out precisely as interest accrues on a daily basis on each individual transaction.

But a common misconception is that you should only pay interest on the remaining amount after you've made a partial payment.  In actual fact you pay interest on the whole lot.

So, each transaction accrues interest on a daily basis from the date of the transaction until it's repaid.  If you clear the whole statement balance, then all of the accrued interest is waived.  If you pay anything less than the full balance, then all of the accrued interest becomes payable - not just interest on the amount that's left over after you've made a partial payment.