Question 1

What happens if I only pay the minimum due on my credit card?

Accepted Answer

You avoid a late-payment penalty, but the entire remaining balance keeps accruing interest — typically 3-3.5% per month (36-42% annualized), among the highest borrowing costs available. Paying only the minimum can take years to clear a balance and cost far more than the original purchase.

Question 2

How is the minimum due amount calculated?

Accepted Answer

Card issuers vary, but a common method is roughly 5% of the outstanding balance (including any interest and fees already added), subject to a fixed minimum floor (e.g., ₹200-500). Check your card's specific terms — this tool uses an illustrative formula.