Why do credit card companies offer a 'minimum due' option? Find out if it's a benefit or a bad deal..

The trend of making payments via credit cards is growing rapidly. From shopping to paying various types of bills, credit cards are being used for almost everything. Paying with a credit card is also convenient. However, it is only when the bank issues the credit card statement that users realize how much they spent the previous month. Banks offer credit card users the option to pay the full bill or just the "minimum due" amount. Consequently, people often feel secure paying only the minimum due instead of the entire bill. Yet, they remain unaware that this habit can cause their CIBIL score to drop and trap them in significant debt.

Paying the minimum due is a useful option for those who face a sudden shortage of funds and cannot make the full payment for the month. Banks provide this option primarily to prevent your account from going into default. However, this does not mean your debt has been cleared.

**The Reality of "Minimum Due"**