CC Minimum Payment Trap
Expose the high-interest cost and time to payoff when paying only the minimum amount due on credit cards.
Quick Summary: CC Minimum Payment Trap
Paying only the Minimum Amount Due (MAD) on credit cards—typically 5% of the balance—is a debt trap. In FY 2026-27, with interest rates averaging 42% p.a. plus 18% GST, paying only the minimum on a ₹1 Lakh debt can take over 30 years to clear and cost over ₹4.2 Lakhs in total interest and GST combined.
How to use the CC Minimum Payment Trap
- 1
Enter Outstanding Balance
Input the total current amount due on your credit card statement.
- 2
Enter Interest Rate
Input the monthly or annual interest rate (APR) charged by your bank.
- 3
Review Payoff Timeline
The tool shows the number of years to reach zero balance if you only pay the minimum each month.
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Regulatory Disclaimer
Last verified May 2026
Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.
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