What is Credit Card Interest?

Credit cards charge interest on unpaid balance after due date. India rates: 30-45% annual (3-4% monthly). One of highest-cost debts. Minimum due payment is a trap — only 5% of balance, extending repayment to YEARS and tripling cost. Always pay full balance before due date for zero interest.

Tips

• Pay full balance — only way to avoid all interest
• Cash advances: interest from day 1 (no grace period) + transaction fee
• Balance transfer to lower-rate card if persistent debt
• Convert large purchases to EMI — 10-14% vs 36-45%
• Don't use credit card for monthly expenses if can't pay full
• Save card limit info securely

FAQs

Effective APR?

30-45%. Compared to home loan 9%, personal loan 12-15%, even education loan 10%. Credit card is most expensive consumer debt.

How to escape credit card debt?

Stop using card. Pay max possible above min. Consider balance transfer (some offer 0% intro period). Personal loan to consolidate may help.

What counts as full balance?

Total outstanding at statement date. Includes purchases, fees, finance charges. Pay this by due date for zero interest next cycle.