Find out when you'll be debt-free
Credit card debt is the most expensive debt most people carry โ and most people carrying it don't fully grasp how expensive it is. When the statement says "minimum amount due," paying that minimum feels like you're handling it. You're not. You're barely covering the interest. The principal barely moves. This calculator shows you the real picture and tells you exactly what it takes to get out.
Banks set minimum payments low โ typically 5% of outstanding balance or โน200, whichever is higher. Paying just the minimum keeps you in debt for years and maximises the total interest you pay. On a โน1 lakh balance at 3.5% monthly, you'll pay back close to double the original amount before the debt is cleared.
Debt Avalanche: Focus extra money on the highest-interest card first. Mathematically optimal โ you pay the least total interest.
Debt Snowball: Focus on the smallest balance first. Faster psychological wins as cards get cleared. The best strategy is the one you'll actually follow through on.
Most credit cards offer conversion to EMI at 13โ18% annually โ far cheaper than revolving credit at 36โ48%. If you're carrying a significant balance you can't clear in one shot, EMI conversion almost always makes sense. For larger consolidation, our personal loan calculator shows what a consolidation loan would look like versus staying on the card.
Pay as much above the minimum as possible, focus on the highest-interest card first, and don't add new purchases while paying it off. Consider taking a personal loan at lower rates to clear the balance in full โ almost any other credit source is cheaper than revolving credit card interest.
Yes, significantly. Even one missed payment can drop your score by 50โ100 points. Payment history is the largest factor in CIBIL scoring. Making at least the minimum payment on time every month is the baseline.
Always pay the full outstanding if you can โ it avoids all interest. If full payment isn't possible, EMI conversion is far better than letting it revolve at the monthly rate. Revolving credit at 3โ4% monthly is the most expensive scenario.
Keep total balance รท total credit limit below 30% for a healthy CIBIL score. Above 50% starts hurting the score even if payments are on time. If you regularly spend close to your limit, requesting a credit limit increase can improve the ratio without spending more.