Why is credit card interest so high?

Cards charge 3–4% per month — that's 36–48% APR. Paying only the minimum can keep you in debt for years.

Does the grace period matter?

Yes. Paying the full statement balance by the due date means zero interest. The trap is partial payment.

Model how long credit card debt actually takes to clear when paying only the minimum, and the total interest you'll pay.

Outstanding balance

₹

Monthly interest rate

% / mo

Monthly payment

₹

Time to clear

2y 11m

Total interest

₹75.0K

Total payment

₹1.75 L

Year	Principal paid	Interest paid	Outstanding
1	₹21,903	₹38,097	₹78,097
2	₹33,097	₹26,903	₹45,000
3	₹45,000	₹9,989	₹0

Each month: interest = balance × monthly_rate; balance = balance + interest − payment.

No new spending added. GST on finance charges and late-fee penalties excluded.