If one just pays only the minimum amount on the credit card, he definitely enters the favorites list of the bank. Bank’s love customers like this as this ensures the bank can charge month on month interest.

And to add on if one makes late payments, it is like cherry on the cake for the bank.

If one makes a one time purchase of 10000 and decides to make the minimum payment (5% of the outstanding) every month it will take around 90 months to have the balance reduce to 100 (@2.5% interest). If you decide to pay 500 p.m. it will take 26 months to finish off the dues and interest of 3000 would have been paid. So try to use the card as less as possible and clear of the dues as early as possible

Getting Out

1). Loan: If the amounts are huge taking a loan would be a cheaper option, as the credit card interest works out to be around 35-40% for most of the banks in India, whereas a loan even with the worst rates would be around 15-25%

2) Convert to EMI: Use this option to convert your any transactions, as the rate is much lesser. Alert here is that processing fee is charged the EMI amount is added to the minimum amount due

3) Use Balance Transfer option- That means applying for a new card and transferring your dues there. Generally the first 6 months are interest free. So it basically it means buying time to pay of the dues.

Please consult your banks for exact rates, fees, term and conditions