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Finance · 6 min read · Last updated September 2026
Issuers use one of three patterns: a flat floor (₹200–400), a percentage of balance (2–5%), or interest charged + 1% of principal. Whichever applies, the payment is dominated by interest early on — that is the mechanism. Monthly interest at 42% APR ≈ 3.5%/month: on ₹80,000 that is ₹2,800/month before any principal moves.
| Payment strategy | Time to zero | Total interest |
|---|---|---|
| Minimum only (5% of balance, floor ₹400) | ~34 months | ~₹28,000 |
| Fixed ₹6,000/month | ~15 months | ~₹11,000 |
| Fixed ₹8,000/month | ~11 months | ~₹7,500 |
The minimum-payment column shrinks as the balance shrinks — that is the trap: your required payment falls exactly when you could afford to keep it constant. The payoff calculator shows your own numbers; the difference between the rows is not subtle.
Order debts by interest rate, pay minimums on everything, and throw every spare rupee at the highest-rate balance — mathematically the cheapest route out. (The snowball method — smallest balance first — costs a bit more interest but wins on motivation; the hybrid is legitimate.) What is not legitimate is the minimum-payment treadmill itself: at high APRs it can stretch a mid-size balance past a decade of payments.
Typically the greatest of: a flat floor (₹200–400), a small percentage of the balance (2–5%), or interest plus 1% of principal. Check your card’s terms — the exact formula determines how slowly the balance falls.
You stay current (no late fees, no credit-score damage) but principal shrinks slowly, so interest keeps accruing — a mid-size balance at a high APR can take years to clear and cost thousands in interest, as the worked table above shows.
Pay minimums on all to stay current, then direct extra money to the highest-APR card (avalanche) for the least total interest — or the smallest balance (snowball) if quick wins keep you motivated. Consistency matters more than the starting choice.
No — on-time minimum payments keep your payment history clean, which is the biggest score factor. But a high utilization ratio (balance ÷ limit) does drag the score, so paying more than the minimum helps the score too.