Is total amount due the same as outstanding balance?
Almost. Total amount due is the sum on your latest bill (purchases + fees + interest up to billing date). Outstanding balance includes new spends after the bill. Always pay total amount due to avoid fresh interest; paying only outstanding can leave last-bill balance unpaid.
When I first saw the phrase “Total Amount Due” on my credit card statement, I wasn’t sure if I had to pay it all right away after checking, I found it was clearer than I thought.
What is the Total Amount Due on a Credit Card?
The Total Amount Due is the full amount you owe on your credit card by the payment due date. It includes all purchases, interest, fees, charges, cash advances, etc., as shown on your statement. For example, if you’ve spent ₹ 20,000, incurred ₹ 500 in fees/interest, your total amount due might be ₹ 20,500.
According to Axis Bank’s description:
“Your statement mentions the Total Amount Due (TAD) to be paid, along with the Payment Due Date (PDD). If the TAD is not fully paid by PDD, interest charges are levied…”
Why It Matters?
• If you don’t pay the Total Amount Due, you’ll likely lose the interest-free period benefit and begin paying interest on your purchases.
• It helps you avoid late payment charges and a negative impact on your credit score.
• Paying this amount in full is the best way to keep your credit card debt under control and avoid compounding interest.
Official Link:
Here’s a trusted source explaining the concept of “Total Amount Due” on a credit card (for Axis Bank):