The "Minimum Due" Illusion
When you receive your credit card statement, the most prominent number is often the "Minimum Amount Due" (usually 5% of your total balance). It feels affordable, safe, and easy. But this is a carefully designed financial trap. Paying only the minimum covers the interest for that month and a tiny fraction of the principal. Because credit card interest rates are incredibly high (often 36-42% annually), the remaining balance grows almost as fast as you pay it off. If you have a balance of ₹1 Lakh and only pay the minimum, it could take you over 10 years to clear the debt, and you might end up paying double the original amount in interest alone. Our SutraBase Payoff Calculator exposes this reality instantly.
The "Fixed Payment" Approach
The first step to freedom is to stop paying a variable "5% minimum" and switch to a "Fixed Payment." Using the "Fixed Payment" tab in our calculator, enter an amount that is higher than your current minimum due—even by just ₹1,000. Because this amount stays fixed while your balance drops, a larger portion of your money starts attacking the Principal Amount every month. Example: If your minimum is ₹2,500, try setting your Fixed Payment to ₹4,000. You will see the "Debt Free In" timeline drop from years to mere months.
Strategy 2: The "Target Date" Method (Reverse Engineering)
Do you want to be debt-free by a specific milestone, like a wedding or the New Year? Use the "Target Date" mode on our tool. Instead of guessing how much to pay, simply tell the calculator: "I want this gone in 12 months." The tool uses the advanced Amortization formula to tell you the exact monthly EMI required to hit that goal. This turns a vague worry ("I have too much debt") into a concrete, actionable plan ("I need to pay ₹8,400 a month").
The Power of the "Lump Sum" Injection
One of the most powerful features of this calculator is the "One-Time Extra Payment" field. Most people wait until they have the entire amount to pay off a card. This is a mistake. If you get a bonus, a tax refund, or a gift of even ₹10,000, inject it into your debt immediately. Use the tool to simulate this: Enter your current balance, then add ₹10,000 in the "Extra Payment" box. Watch how the Total Interest (the red number) crashes down. That single payment doesn't just reduce the balance; it stops that ₹10,000 from generating compound interest against you for the next 5 years.
Why Your Credit Score Matters
Carrying a high balance on your credit cards doesn't just cost you money; it hurts your Credit Score (CIBIL). This is called "Credit Utilization." Ideally, you should use less than 30% of your limit. By using this calculator to aggressively pay down your balance, you aren't just saving on interest—you are actively boosting your credit score, which will help you get cheaper home loans and car loans in the future. Download your custom Payoff Plan PDF today and stick to the schedule to reclaim your financial freedom.