The Minimum Payment Trap
Credit card companies typically set the minimum payment at just 5% of your outstanding balance. If you only pay this minimum:
- Compounding Debt: Unpaid interest gets added to your principal base, magnifying your liability exponentially.
- Endless Tenure: A ₹1,00,000 balance at 40% APR could take over 10 years to clear paying only minimums.
- Credit Score Hit: High credit utilization ratios resulting from revolving debt will severely damage your CIBIL score.
Strategies to Escape Debt Faster
If your payoff timeline looks overwhelmingly long, consider a Balance Transfer to a high-limit card with a 0% introductory rate, or convert the outstanding amount into a structurally cheaper Personal Loan (usually available at 11-15% PA instead of 40%).
Frequently Asked Questions
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.