MoneyRadar

Credit card interest trap

See how long a balance takes to clear — and what it bleeds.

Quick answer

A credit card debt calculator shows how long an unpaid balance takes to clear and total interest at 36–48% APR in India. If your payment covers less than monthly interest, the debt never clears — pay the full statement balance.

₹50K
42%
₹3,000

Time to clear it

26 months

Paying ₹3,000/month against ₹50,000 at 42% APR.

Extra paid as interest
₹26,359
Total you'll pay
₹76,359

Clear the full bill every month and this number is always zero.

Am I ready for a card?

Rates & rules checked on 26 July 2026 · based on FY 2025-26 (AY 2026-27).

What this tells you

Credit cards charge 36–48% a year on unpaid balances — the most expensive mainstream debt in India. This shows how long a balance takes to clear and what it bleeds.

How it's calculated

We apply the monthly interest to your balance, subtract your payment, and repeat until it clears. If your payment can't cover the monthly interest, the debt never clears — the balance grows forever.

Common questions

What's the minimum-due trap?
Paying the statement's minimum due may avoid overdue status, but the unpaid balance keeps attracting expensive finance charges and you normally lose the interest-free period. There is no universal 5% formula — use the minimum printed on your actual statement and aim to pay the full statement balance.
Read the full guide: Best cards (if you pay in full)

Jargon, explained

More loans & debt tools

Sources

For general education, not personalised financial advice. Verify current rates and rules before acting — tax laws and interest rates change.