Paying only minimum due on your credit card? You could be in a debt trap

A credit card debt trap occurs when you are paying only the minimum due, or Using one card to pay off another. To avoid this, spend no more than 30 per cent of the card limit each month

Credit card delinquencies in the 91–360 days overdue category rose 44.3 per cent year-on-year, from Rs 23,475.6 crore in March 2024 to Rs 33,886.5 crore in March 2025, according to a report by CRIF High Mark. These figures underline the need for customers to be more cautious in their use of credit cards.

Reasons for rising NPAs

A major reason for rising credit card NPAs is the minimum payment mindset. “According to a report by the Reserve Bank of India (RBI), only 40 per cent of Indian credit card holders repay their full outstanding amount every month. This encourages prolonged debt cycles