Just pay the minimum — the bank's three sweetest words

The statement arrives. Total due: ₹48,000. Minimum due: ₹2,400. Below that, in tiny type: "paying only the minimum will increase your interest and extend your payoff period." Nobody reads it. Let's read it today — in full rupees.

How hard an Indian credit card can hit

Indian card interest runs 36% to 48% per year. To repeat: 36–48% every year. Home loans are 8–9%. Personal loans 12–14%. Cards charge three times more. And this interest compounds daily — today's balance earns interest on yesterday's interest.

Credit card interest isn't a fee. It's a slow-motion mugging at 40% per year.

A small example, with real numbers

₹1 lakh outstanding, 42% APR, 5% minimum. If you pay only the minimum each month:

• The card takes 19+ years to clear.
• You'll pay ~₹1.4 lakh in interest — more than the principal.
• Total paid: ~₹2.4 lakh on a single ₹1 lakh swipe.

You're stuck in a loop where every payment barely covers the interest. The bank is very, very happy.

The way out

• If the outstanding is more than three months of salary, take a personal loan at 12–14% today, clear the card, and treat the loan like rent — no rest until it's paid.
• If the outstanding is small, pay the full amount, not the minimum. One or two months and it's clean.
• Balance transfer is an option — some cards offer 0% interest for 3–6 months. Use it as a fixed EMI plan, otherwise it's the same trap.
• Change auto-pay from "minimum due" to "total due". A 30-second setting change that will save you lakhs.

A real reset button

For one month, put the card in your wallet and remove it from your phone. UPI and debit still work. Open the next statement and see how much lighter it feels.

One line to remember

Minimum due is a trap the bank has packaged as a helpful feature. Pay the full amount, or don't pay at all and cancel the card. Stopping in the middle is the most expensive route.