Glossary
Revolving Interest
When you pay only the minimum of the credit card bill (or an amount between the minimum and the total), the remaining balance enters revolving. On this balance, the bank charges the highest interest rate in the market.
Regulatory limit (and its loopholes)
Regulations in many countries limit how long debt can stay in revolving before being converted to an installment plan, but rates remain very high.
Why it is the worst debt
| Type of debt | Average annual interest (2026) |
|---|---|
| Credit card revolving | Very High (e.g., 20-30%+) |
| Overdraft | High |
| Personal loan | Moderate |
| Secured loan | Low |
How to get out of revolving
- Stop using the card immediately.
- Take out a personal loan at a lower rate to pay off the revolving.
- Use the card only on debit until stabilized.
- From the following month, pay the full bill every month.