How banks calculate interest and how you can avoid paying it forever. The truth about Minimum Due.

The Truth Uncovered

The 'Minimum Amount Due' is the biggest scam in the credit card industry. It's designed to keep you in debt for decades. When you pay only the minimum, you lose your interest-free grace period. Suddenly, every new purchase you make starts accruing interest from day one, at a staggering 40%+ annualized rate. Banks love minimum payers—they call them 'Revolvers' because the debt just keeps revolving.

Actionable Takeaways

  • NEVER pay the 'Minimum Due'. Set your auto-pay to 'Total Amount Due'.
  • If you can't pay the full amount, convert the transaction into an EMI instantly. EMI interest (15%) is far lower than default revolving interest (40%+).
  • Understand that cash withdrawals from an ATM using a credit card start charging interest on day 1 with no grace period.

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