If you’re a credit card user in India, chances are you’ve come across the term “Minimum Amount Due” or MAD on your monthly credit statement. But what exactly does it mean—and why should you care?
💡 What is the Minimum Amount Due (MAD)?
The Minimum Amount Due is usually 2% to 5% of your total outstanding credit card bill. It’s the minimum payment required by your bank to avoid late fees or having your card blocked. However, paying just MAD doesn’t stop interest from accumulating.
📉 Why Paying Only MAD Is a Problem
Paying only the MAD every month may:
- Keep your CIBIL score safe temporarily
- Prevent late payment fees
- But it won’t reduce your principal balance
- You’ll still incur high-interest charges (up to 36%-42% per annum)
Over time, this traps you in a debt cycle, especially if you use multiple credit cards.
✅ What You Should Do Instead
- Try to pay your full balance every month
- Avoid using more than 30-40% of your credit limit
- If stuck, consider credit consolidation or expert consultation
🚨 Are You Stuck in a Credit Trap?
If you’re juggling multiple credit cards and only paying MAD every month, your financial stress may keep growing. Don’t wait until it’s too late.
🛟 Reach Out to Shivafinz for Help
At Shivafinz, we help individuals:
- Strategize repayment for multiple credit cards
- Protect & rebuild their CIBIL score
- Get out of debt without hassle
📞 Contact us today for free consultation and instant support!