Card Debt Refinance

Your credit card debt is bleeding you

See exactly how much, and the cheaper way out

Credit card balances quietly charge you 35 to 45% a year. A way out can be a cheaper loan against an asset. This way, you can save a quarter of the interest. This calculator shows exactly what that switch saves you in real numbers.

Your numbers

₹
Credit card interest rate 42% per year
Secured loan rate 10% per year
Clear it over 3 years
Your result
You’d save in interest
₹0
Enter your card balance to begin.
Stay on the credit card
rate 42%
Monthly payment₹0
Total interest₹0
Total you pay₹0
Refinance to secured
rate 10%
Monthly EMI₹0
Total interest₹0
Total you pay₹0

The trap you’re in right now

Why this works. A credit card is the most expensive money you can borrow, and it never gives you a fixed payoff schedule, so the balance revolves and the interest compounds on itself. A secured loan is cheap because you back it with an asset, and it comes as a proper term loan with a fixed EMI and an end date. Moving the balance from one to the other means paying a far lower rate on money you already owe, not finding new money from anywhere.
The catch: a secured loan pledges your home or your gold. If you stop paying, you can lose the asset. This move buys you breathing room and a lower rate, but only works if the spending that built the card debt stops at the same time. Cut up the cards the same week you refinance.

What do you do when your expenses run three times your salary?

That was the real situation on Episode 43 of Money Matters by Ankur Warikoo. One income, expenses running close to three times as much, and credit cards quietly filling the gap every month. It is an uncomfortable watch, and it is exactly the pattern this calculator exists for.


If any part of that sounds familiar — a card balance that never quite clears, minimum payments that barely move the number — fill in your own numbers below. You will see exactly what switching from card debt to a cheaper secured loan would save you.

Why does credit card debt cost so much more than any other loan?

Most loans charge a fixed rate on a fixed schedule, so you always know when the debt ends. Credit card debt works differently. Indian card issuers typically charge between 35% and 45% a year, and if you only pay the minimum due, the balance barely moves because the interest keeps compounding on itself every month. A ₹5 lakh balance paid at the minimum can take over two decades to clear and cost more in interest than the original amount you borrowed, which is exactly why credit card debt feels impossible to escape even while you keep making payments.

What's the fastest way out of credit card debt if you can't clear it in one shot?

If clearing the whole balance today is not realistic, the fastest real fix is to move the debt somewhere cheaper, not to keep paying the card's own rate. A loan against property or gold typically costs around 10% a year, against the 35 to 45% you are paying on the card, because you are backing the loan with an asset the lender can rely on. That single swap can cut your monthly outgo by thousands and save lakhs in interest over a few years, turning an open-ended revolving balance into a loan with a fixed EMI and a real end date. The trade-off is real: you are putting up your property or gold as security, so this only makes sense if you also stop adding fresh spending to the cards you are refinancing away from.

This is an estimate, not financial or loan advice. Credit cards do not use a fixed EMI; the card figures here estimate what it would cost to clear the same balance over the chosen period at the card rate, so you can compare like with like. Actual card interest depends on your billing cycle and payments. Secured loan approval, rate and amount depend on the lender and your collateral. Rates shown are typical, not quotes. Confirm real numbers with lenders before acting.