Paying the minimum due on your credit card doesn't keep you safe — it keeps you in debt, longer and more expensively.
Credit cards in India charge 36–42% interest per year on your remaining balance. That's not a typo. Pay ₹500 on a ₹10,000 bill and the other ₹9,500 starts compounding at that rate — every single month.
On a ₹50,000 card balance, that interest alone can add ₹1,500–1,750 to your debt every month you don't clear it.
What this means for you
- The minimum due protects your credit score — but it does nothing to reduce what you actually owe
- A ₹10,000 balance paid only via minimums can take 3+ years to clear and cost you more in interest than the original spend
- Once interest kicks in, even new purchases on that card stop getting the interest-free grace period
What you can do
- Pay the full outstanding amount this month if you can — even clearing 50% makes a real dent in the interest hit
- If you're stuck in a cycle, convert your balance to a personal loan or card EMI — rates are 14–18%, still high but roughly half what your card charges
The minimum due was designed to keep you paying — not to help you get free. You now know exactly how the trap works, and that's the first step out of it.
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