Paying minimum due protects your account from immediate late-payment penalties, but it does not meaningfully reduce debt. The unpaid
balance continues to accrue finance charges, and any fresh spending can keep the cycle alive for years. The trap is behavioral as
much as mathematical: small monthly payments feel manageable while total interest quietly compounds.
What minimum due really means
It is the minimum amount required to keep the account in good standing for that billing cycle.
It is not a repayment strategy and does not indicate healthy progress toward zero balance.
After minimum payment, interest usually applies on the remaining revolving balance as per card terms.
Why balances stay alive for too long
Card APR is usually high versus most other household borrowing.
Large share of payment goes toward interest, not principal reduction.
New transactions on the same card restart repayment pressure.
Users plan based on monthly affordability, not total payoff timeline.
Core reality: if your monthly payment is only a little above monthly interest, debt reduction will be extremely slow,
even though you keep paying every month.
Illustrative repayment contrast
Assume an outstanding balance of 1,20,000 with high revolving interest and no new transactions.
Scenario A: continue paying only minimum due.
Scenario B: switch to a fixed monthly amount materially above minimum.
Scenario B usually cuts both payoff time and total interest significantly. Exact values depend on card APR, monthly fees/taxes,
and whether new purchases are added, but the directional result is consistent.
Practical debt-exit framework
Freeze new revolving spend on the problem card.
Set fixed repayment amount that is meaningfully above minimum due.
Auto-pay on statement cycle date to avoid misses.
Increase repayment after salary hikes, bonus, or debt closure elsewhere.
Track monthly interest paid to measure progress objectively.
If you have multiple cards
First, ensure all cards stay current (avoid late fees and credit score damage). Then use a method:
Avalanche method: extra payment goes to highest-interest card first.
Snowball method: extra payment goes to smallest balance first for momentum.
Avalanche is mathematically efficient; snowball can be behaviorally easier. The better method is the one you can sustain without
missing months.
Balance transfer and conversion plans
Balance transfer or EMI conversion can help, but only if total cost falls and you stop fresh revolving usage. Always compare
processing fee, transfer interest, validity period, and penalty terms before committing.
Behavior controls that prevent relapse
Keep one primary spending card and reduce idle card usage.
Set transaction alerts and monthly spending caps.
Move discretionary spending to debit/UPI while in debt-recovery phase.
Keep emergency cash reserve to avoid new revolving debt during shocks.
Warning signs that need immediate action
You borrow to pay card bills.
Minimum due itself is difficult every month.
Outstanding is not falling despite regular payments.
Cash withdrawals from card are becoming frequent.
In these cases, restructure early. Delay increases cost and stress.
Action checklist for this week
List every card: outstanding, APR, minimum due, and due date.
Stop new spending on revolving cards.
Set fixed monthly debt-payment budget above combined minimums.
Choose avalanche or snowball order and lock it for 3 months.
Review progress monthly and increase payment when possible.
Methodology page to understand assumptions and limits in projections.
This guide is informational and not financial advice. Card pricing, fees, and taxation differ by issuer and can change. Verify your
latest card terms before making repayment decisions.