What the minimum due covers
The minimum due is usually a small percentage of the outstanding balance, or a fixed amount if that is higher. Check your statement for the exact rule on your card, because it differs between banks.
A worked example
Suppose the bill is ₹20,000 and the minimum due is ₹1,000. Paying only ₹1,000 leaves ₹19,000 unpaid. At a monthly interest rate of 3.5 percent, the interest on that balance is about ₹665 for one month, and it can grow if the balance is carried for longer.
How to get out of the trap
Pay as much as you can above the minimum, starting with the card that charges the most interest. Stop new purchases on the card until the balance is down, and record every payment in your tracker so progress is visible.
- The minimum due avoids a late fee only
- Unpaid balance keeps earning interest
- Pay above the minimum when possible
- Track each payment against its cycle
Questions people ask
Is paying the minimum due ever a good idea?
It is better than a late payment, but it should be a short-term step. Plan to pay more as soon as your budget allows.
Where do I find the interest rate?
Your statement and card terms show the rate. Use the figure for your card in our interest calculator.
Does budgetbaba show minimum due?
You can record the amount you paid and see the cycle status as Part paid or Paid, so the balance stays visible.