The credit card minimum due trap
Paying the minimum due keeps the account current while the rest of the balance rolls over at the card's interest rate. At 36-42% a year, a revolving balance is the most expensive money in an Indian household by a wide margin.
What it means
Paying the minimum due keeps the account current while the rest of the balance rolls over at the card's interest rate.
Why it matters to a household
At 36-42% a year, a revolving balance is the most expensive money in an Indian household by a wide margin.
Where it trips people up
Believing the minimum due is a payment plan. Paying it on a large balance can take years and cost more in interest than the original purchase.
In an Indian household
Interest-free periods vanish the moment you carry a balance — new purchases start accruing interest immediately until the whole balance is cleared.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
The credit card minimum due trap
Paying the minimum due keeps the account current while the rest of the balance rolls over at the card's interest rate.
Why does it matter?
At 36-42% a year, a revolving balance is the most expensive money in an Indian household by a wide margin.
What do people usually get wrong?
Believing the minimum due is a payment plan. Paying it on a large balance can take years and cost more in interest than the original purchase.
Is there anything India-specific?
Interest-free periods vanish the moment you carry a balance — new purchases start accruing interest immediately until the whole balance is cleared.