The Danger of Credit Card Interest
Credit cards in India typically charge an Annual Percentage Rate (APR) ranging from 36% to 42% annually. This translates to roughly 3% to 3.5% per month. Because it compounds extremely fast, carrying a balance on a credit card is one of the most toxic financial positions you can be in.
The Minimum Payment Trap
Banks actively encourage you to pay just the "Minimum Amount Due" (usually 5% of the total balance). If you only pay the minimum, you are mostly just covering the monthly interest fee, meaning the actual principal balance barely shrinks. This stretches out your debt for years and can easily result in you paying back double or triple what you originally borrowed.