How Your Credit Card Debt Could Secretly Double — And How to Stop It
Have you ever made a small payment on your credit card and felt like you’ve done enough for the month? Or maybe you’ve bought something expensive thinking you’ll deal with the bill later?
That’s exactly how many people end up stuck in long-term debt — not because they spend recklessly, but because they underestimate how fast interest adds up.
There’s a simple concept that explains it perfectly — it’s called the Rule of 72. And once you understand how it works, you’ll never look at your credit card the same way again.
What Is the Rule of 72?
The Rule of 72 isn’t a banking regulation or RBI rule. It’s just a smart financial trick to quickly estimate how long it takes for money to double — either in your investments or, more dangerously, in your debt.
Here’s how it works:
Just divide 72 by the annual interest rate, and you’ll get the number of years it takes for the amount to double.
For example, if your credit card has a 24% interest rate:
72 ÷ 24 = 3 years
That means a ₹10,000 balance on your card — if left unpaid — could grow to ₹20,000 in just three years, without you spending another rupee.
Why Credit Cards and the Rule of 72 Are a Scary Combo
Credit cards charge high interest, and if you're only making minimum payments, most of that money goes toward interest — not the actual debt. This allows your balance to keep growing, even though you feel like you're "doing something" every month.
Interest also compounds, which means you end up paying interest on top of interest. The Rule of 72 shows just how quickly this can get out of control. A simple swipe today can cost double a few years from now if you’re not careful.
Why This Doesn’t Happen with Debit Cards
Debit cards are simple. You spend your own money directly from your bank account. There’s no interest, no loan, and definitely no compounding.
That’s why the Rule of 72 doesn’t apply to debit cards — because there’s nothing to “double.”
The Takeaway: Use the Rule as a Warning Sign
This simple rule is more than just a math trick — it’s a wake-up call.
If you carry balances on a high-interest card, the Rule of 72 can show you the real cost of waiting to pay it off. Instead of being surprised by how fast your debt grows, use this rule to stay one step ahead.
Pay more than the minimum. Avoid unnecessary card swipes. And if you can, pay your full balance each month. That’s the only way to stop interest from working against you.
Because once you fall into that trap, climbing out can take much longer — and cost much more — than you ever expected.
