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Debt guide

Credit card debt: how to get out fast

Credit card interest — 36–42% a year — is the most expensive money most Indians ever borrow. The good news: a clear plan can clear it far faster than the bank would like.

Why minimum payments are a trap

The “minimum due” is designed to keep you in debt. On a ₹2 lakh balance at 40%, the interest alone is about ₹6,700 a month — so a small minimum payment barely dents the principal, and the balance can linger for years.

Three ways out, cheapest first

MethodHow it works
Convert to a personal loanMove the balance to a 12–16% loan — biggest interest saving
Balance transferShift to a card with a low-rate intro period; clear it before it ends
AvalanchePay the highest-rate card first while paying minimums on the rest
SnowballClear the smallest balance first for quick momentum

The one rule

Always pay more than the monthly interest — ideally the full statement — or the balance never falls. Use the payoff calculator to see your real timeline, then attack it with a fixed monthly amount.

See your payoff timeline

Find out how fast a fixed payment clears your card — and what a loan would cost instead.

Card Payoff →Personal Loan EMI →

Frequently asked

Why is paying only the minimum so dangerous?
At 36–42% annual interest, the minimum (often 5% of the balance) barely covers the interest, so the principal hardly moves. A balance can take a decade and cost more in interest than the original spend.
Avalanche or snowball — which is better?
The avalanche method (pay the highest-interest card first) saves the most money. The snowball method (clear the smallest balance first) is slower but gives quick wins that keep you motivated. Both beat paying the minimum.
Should I take a personal loan to clear card debt?
Often yes. A personal loan at 12–16% is far cheaper than a card at 40%. Converting card debt into a fixed-EMI loan can dramatically cut interest — just avoid running the cards back up.

Illustrative figures at ~40% card APR; rates vary. Estimates for planning, not financial advice.