5 Brutal Truths About Credit Card Debt (And How I Finally Escaped It)
You’ve seen the ads:
“Clear ₹2L in credit card debt instantly!”
“Pay off your loan in 30 days – guaranteed!”
But what they don’t tell you is what it feels like to wake up every day worried about minimum dues, rising interest, and a sinking sense of financial failure.
I’ve lived that.
At 22, I was drowning in credit card debt and trust me, no app or bank program saved me.
What changed my life were 5 hard truths that no financial guru ever told me.
Truth #1: The Minimum Payment Is a Profit Machine for Banks, Not You
Credit card companies want you stuck.
The “minimum payment” looks harmless. It’s not.
It’s a carefully calculated trap that covers mostly interest, not your actual debt.
Banks charge interest daily based on your average daily balance.
So when you delay even a single payment or stick to just the minimum you’re funding their profits.
Let’s break it down:
If your debt is ₹1,00,000 with a 36% APR, you’ll pay over ₹30,000 a year just in interest. That’s like buying a new smartphone for the bank every year without even realizing it.
Action Tip: Always pay more than the minimum even ₹500 extra per month slashes years off your debt.
Set autopay 5 days before due date to reduce your daily balance faster.
Truth #2: Debt Isn’t a Moral Failure — It’s a Math Problem
You’re not “bad with money.” You were never taught the math.
In India and globally, millions fall into debt due to poor financial education, not overspending.
From medical bills to job loss to inflation life happens.
The shame society attaches to debt is toxic and dangerous.
Debt is not a character flaw. It’s a system designed to confuse you, and math is your weapon to break free.
Action Tip: Start with awareness. Use a credit card interest calculator (coming soon on CrunchyFin) to see how much you’re really paying.
Truth #3: EMI = Emotional Misleading Investment
EMIs don’t make things affordable. They make you comfortable with debt.
“Easy EMI”, “0% Financing”, “Buy Now Pay Later” all sound great.
But once you’re in, you’re paying fees, stuck in long cycles, and risk triggering penalty interest rates with one late payment.
You could be paying for a phone long after it’s broken.
Action Tip: Use the Debt Snowball (smallest to largest debt) or Debt Avalanche (highest interest first) method.
Focus every extra rupee or dollar toward one target.
Truth #4: Cutting Expenses Won’t Save You — Earning More Will
You can’t save your way out of ₹3L debt if your income is ₹30K/month.
Side income is no longer optional.
Whether it’s freelancing, tutoring, or selling old gadgets an extra ₹5,000–₹10,000/month can cut years off your debt timeline.
Explore:
Truth #5: You Can’t Fix What You Don’t Track — Especially When Paying Off Credit Cards
The ₹100 coffee, the $3 app, the daily Swiggy order they add up fast.
Debt thrives in financial fog.
The only way out is total visibility.
You don’t need a fancy app a Google Sheet or notebook works.
Download: CrunchyFin Credit Tracker (Google Sheet)
Final Word:
You weren’t born with debt. And you don’t deserve to die with it.
These 5 truths aren’t easy but they’re real.
Forget the gimmicks. Forget shame.
Take one small step today and take your life back.
