Credit card debt: Why paying only the minimum keeps you trapped

Paying the total outstanding amount by the due date avoids finance charges on carried-forward balances, subject to the card's terms. For those already juggling multiple balances, listing all outstanding dues with their interest rates brings clarity. Paying off the highest-interest debt first while making required payments on other dues cuts the overall interest burden.

Temporarily stopping credit card use helps break the cycle. If full repayment is not possible, borrowers should discuss EMI options with their issuer. All aspects need evaluation: the interest rate, processing fees, and total repayment amount.

Narayanam offered a direct path for those already in debt. "Stop using the card, prioritise clearing the highest-interest balance first and consider converting to an EMI at a lower rate," he said. "Financial freedom isn't just about earning more, it's about owing less."

Financial freedom depends on how efficiently someone manages what they owe. Having fewer financial obligations between you and the life you want to build matters more than having more cash in hand.